Global investment firm Ircantec assigns a manager to oversee an €800 million global equity assignment
Ircantec Commits €800m to Nordea Asset Management's Sustainable Equity Strategy
Ircantec, a French pension scheme for non-permanent government employees, has taken a significant step towards decarbonization and sustainable investment by appointing Nordea Asset Management (NAM) to manage an €800m global equity mandate. This move is part of Ircantec's broader responsible investment strategy, aimed at aligning its portfolio with global sustainability goals.
Background on Ircantec’s Commitment to Decarbonization and Sustainable Investments
Ircantec's commitment to sustainable investing is rooted in the integration of Environmental, Social, and Governance (ESG) criteria into its investment decisions. The fund has set objectives to reduce the carbon footprint of its investment portfolio, moving away from fossil fuel industries and increasing allocations to companies and projects that contribute to climate solutions.
As a public-sector pension scheme, Ircantec is aligned with French and European Union regulations which emphasize fiduciary duty towards sustainable finance. The pension fund is committed to increasing transparency on ESG impacts through regular, detailed reporting on carbon footprints, climate-related risks, and investment outcomes related to sustainability.
Partnership with Nordea Asset Management
The new mandate, launched in January 2025, is structured within a French-domiciled fund hosted by ODDO BHF AM. NAM will oversee a customised active global equity strategy in partnership with ODDO BHF Asset Management. The mandate is designed to help Ircantec meet its goal of a 7% annual reduction in CO2 emissions.
NAM's Responsible Investments Team will play a key role in evaluating companies based on their sustainability contributions. The strategies incorporated in this mandate will utilise proprietary decarbonisation tools to track progress towards net zero.
Other Strategic Allocations and Future Plans
Ircantec has pledged to divest from fossil fuel assets by 2030. Going forward, the pension fund plans to expand green asset allocations, enforce exclusions on carbon-intensive sectors, improve climate risk management, and maintain transparent reporting, underscoring its long-term commitment to a sustainable, low-carbon future.
NAM will manage the mandate using its BetaPlus Responsible Enhanced Equities Strategies. The mandate is focused on decarbonisation and is scaled to reach €1.8bn, with Ircantec committing an initial €250m. The mandate is hosted by ODDO BHF Asset Management, with the Multi Assets Team managing the investment. This team has over 15 years of experience with BetaPlus strategies and €60bn in assets under management.
Ircantec's partnership with Nordea Asset Management enhances its capabilities in responsible, climate-aligned investment through thematic portfolios and active stewardship. The pension fund participates in international initiatives such as the Principles for Responsible Investment (PRI) and collaborates with other institutional investors to improve climate risk management and share best practices.
In conclusion, Ircantec's commitment to sustainable investing reflects growing awareness of climate risks and the necessity to support the transition to a low-carbon economy. Its partnership with Nordea Asset Management is a significant step towards achieving this goal, demonstrating a long-term commitment to a sustainable, low-carbon future.
- Recognizing the importance of Environmental, Social, and Governance (ESG) criteria in investment decisions, Ircantec aims to invest in companies and projects contributing to climate solutions, thus reducing the carbon footprint of its portfolio.
- As part of its long-term commitment to a sustainable, low-carbon future, Ircantec plans to increase transparency on ESG impacts and claims it will divest from fossil fuel assets by 2030.
- Guided by Nordea Asset Management's BetaPlus Responsible Enhanced Equities Strategies, Ircantec's partnership with the asset management company enables it to participate in thematic portfolios and engage in active stewardship, focusing on decarbonization and supporting the transition to a low-carbon economy.
