Nordea AM launches climate strategy designed to curb real CO2 emissions

Nordea Asset Management (NAM) – a global leader in sustainable and responsible investments – has extended its suite of climate-focused solutions with the launch of the Nordea 1 – Global Climate Engagement Fund. 

NAM has been a longstanding proponent of climate and environment investing since the launch of its renowned Nordea 1 – Global Climate and Environment Fund – now Europe’s largest Article 9 vehicle – back in 2008.

The Nordea 1 – Global Climate Engagement Fund is managed by Alexandra Christiansen and Robert Madsen, members of NAM’s Sustainable Thematic team, which is headed up by Thomas Sørensen and Henning Padberg, the managers of the Global Climate and Environment Fund. The Sustainable Thematic team is a sub-group of NAM’s Fundamental Equity boutique, which consists of 27 portfolio managers and analysts.

The new fund is further supported by NAM’s 25-strong Responsible Investment team, which includes dedicated impact and engagement specialists.

The new Nordea 1 – Global Climate Engagement Fund, an Article 8 vehicle, leverages the experience, investment approach and risk management framework of the Global Climate and Environment strategy, but instead of focusing on leaders in climate solutions, it targets companies in the earlier stages of transitioning towards sustainable business models.

By pushing these companies to catch up to climate leaders, this approach unlocks under-appreciated value and contributes to the reduction of real-world emissions.

Alexandra Christiansen, portfolio manager of the Nordea 1 – Global Climate Engagement Fund, comments: “Over the past few years we have witnessed a meaningful flight of capital out of areas of the market deemed ‘not green enough’ and potentially at risk in the transition to a net zero emissions world. Yet we believe many businesses that are carbon intensive today will still be relevant in the future green economy – or even critical to enabling the energy transition. Our goal is to generate alpha by de-risking the fundamentals of these companies through engagement on decarbonisation targets, strategy, and capital commitments.”

Thomas Sørensen, head of NAM’s Sustainable Thematic team, adds: “Capitalising on NAM’s many years of experience managing climate-forward strategies, we have the insights required to support companies throughout their green transition journey. By engaging with companies and promoting progressive actions, we truly believe investors can help to significantly curb real-world emissions, while also generating meaningful alpha.”

NAM is a founding member of Net Zero Asset Managers initiative and has set a target to align the top-200 carbon emitting companies in its portfolios with the 1.5°C goal of the Paris Agreement by 2025. NAM currently manages about €12bn in climate solutions.”

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