Smart Pension Announces its First Green Bonds Investment with Mirova Global Green Bond Fund

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by KnowESG
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Smart Pension, one of the UK's major workplace pension providers, has made its first investment in green bonds through the Mirova Global Green Bond Fund.

Green bonds are a way to deal with climate change efficiently, and Smart Pension is one of the first master trusts to put its default growth fund in green bonds. This means that Smart Pension stays at the top of its field in terms of sustainability.

Mirova's Global Green Bond Fund directly funds projects with a high environmental and social positive impact, thereby making a real difference in the lives of people and the planet.

Investing in green bonds also enhances financial and environmental outcomes for savers.

The news comes after Smart Pension and AXA Investment Managers established a biodiversity partnership in October 2022, intending to increase Smart Pension's investments in decarbonisation and companies addressing biodiversity loss.

In October 2021, Smart Pension joined the Institutional Investors Group on Climate Change and agreed to the Impact Investing Institute's Impact Investing Principles. This was done to promote and advance its investment solutions in light of climate change.

The Smart Pension Master Trust also puts money into a private credit fund that makes decisions based on environmental, social, and governance (ESG) principles. This gives DC pension plans a rare chance to invest in this asset class.

Smart Pension said in June 2022 that its default growth fund will be net zero by 2040 and is on track to cut emissions by 50% between 2019 and 2025.

Paul Bucksey, Chief Investment Officer at Smart Pension, commented:

“We are focused on achieving great outcomes for our members. We want to help them secure not just long-term financial growth but also a safer, healthier world in which they can retire. The pension industry has a golden opportunity to drive faster decarbonisation, by investing in businesses that are serious about cutting their carbon emissions. Over 70% of our flagship growth fund has been invested in sustainable funds for a while now, and this investment, coupled with other recent changes, brings us to 100%. We expect these investments will play a key role in achieving our 2040 net-zero targets.”

Fiona Smith, Investment Proposition Manager at Smart Pension, commented:

"We're thrilled to be working with Mirova, which was one of the first companies to invest in green bonds. They have a lot of experience in the market and good governance. Mirova provides transparency and traceability to make sure the funds really do make a difference. Green bonds are an important addition to our growth fund because they directly fund environmental projects and have a tangible impact on the world around us. We chose Mirova’s Global Green Bond Fund to incorporate its environmental strategy as we seek to improve results further for our members.”

Hervé Guez, CIO of Equities, Fixed Income and Social Impact Management at Mirova, commented:

“We are grateful to Smart Pension for their trust in our expertise in fixed income and sustainable investing. For 10 years now, we have developed a strong knowledge of the green bond segment, and we are eager to maximise our environmental impact and deliver returns while helping to safeguard the integrity of this fast-growing market”

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Source: Smart Pension

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