first_imgDanish labour-market pension fund Industriens Pension has reworked its largest bond mandate, a DKK8.9bn (€1.2bn) global fixed income investment grade portfolio managed by PIMCO, turning it into a sustainable bond fund with more than a tenth of assets in green bonds.The DKK174bn pension fund said that after discussions with the US bonds giant about how the existing mandate could been given an ESG profile, the money is now being transferred into a new tailored global investment grade bond portfolio.The new investment mandate is built on bonds from companies that make a special contribution to one or more of the UN’s 17 sustainable development goals, the pension fund said.Anders Ellegaard, bond manager at Industriens Pension, said: “Sustainability and solid, long-term returns often go together very well if the investments are handled by a skilled manager.” Industriens Pension, which caters for Denmark’s industrial sector, said CO2 emissions related to the portfolio managed by Allianz subsidiary PIMCO would only be around 50% of those associated with the mandate’s benchmark, with around DKK1bn of the fund being earmarked for green bonds.PIMCO is to use a wide range of data from different sources to score investee companies’ environmental impact, social responsibility and governance culture, with only qualifying firms being selected for investment, the pension fund said.Industriens Pension also said it planned to continue increasing its green investments over the next few years, adding that it had invested over DKK10bn in green energy and firms with renewable energy at the centre of their business strategies by the end of last year.At the beginning of April, the pension fund announced it was blacklisting all firms whose business models centred around tar sands extraction, implementing a decision it originally made in December.To read the digital edition of IPE’s latest magazine click here.last_img