Sweden’s AP7 has nearly doubled the size of a “green impact” mandate awarded to Impax in 2018, with a spokesperson at the asset manager saying it reflected a reallocation following “positive experience” since the initial investment.
The initial mandate was for SEK758m (€73.5m) and has been increased to SEK1.4bn.
According to Impax, a key aspect of its mandate was for it to contribute as a strategic partner to AP7’s “green impact objective”. AP7 has an ambition to make a difference when it comes to sustainability, and awarding the impact mandate was one step towards that. Senior portfolio manager Hans Löfgreen indicated Impax had been delivering on expectations.
“AP7 has the stated ambition to develop, together with managers, methods to measure the sustainability benefits of investments,” he said in a statement.
“We have been able to successfully partner with Impax to develop metrics and methodologies that measure the real-world impact of its investments.”
A spokesman for AP7 added that Impax had performed well “both financially and on the impact work”.
Lisa Beauvilain, head of sustainability and ESG at Impax, said the asset manager would “further development the measurement of the environmental impact of AP7’s green impact mandate with the two organisations becoming dialogue partners”.
The money that AP7 has allocated to Impax is to invest via the asset manager’s “Leaders” strategy, which invests in companies that derive more than 20% of their underlying revenue from sales of environmental products or services in the energy efficiency, renewable energy, water, waste and sustainable food and agriculture markets.