Smart Pension is looking to improve the ESG-rating of its fixed income investment portfolio by investing in green bonds. The master trust default will invest in the Mirova Global Green Bond fund, which directly funds projects searching for high environmental and social positive impact.
The Smart Pension Master Trust also invests in a private credit fund, whose investment decisions are grounded in ESG principles, providing rare access to this asset class in DC pension schemes.
Recently Smart Pension announced a biodiversity partnership with Axa Investment Managers, with the aim of bolstering Smart Pension’s investments into decarbonisation and companies that are addressing biodiversity loss.
In June 2022, Smart Pension announced that its default growth fund will be net zero by 2040 and that it is on track to have cut the fund’s emissions by 50 per cent between 2019 and 2025.
Smart Pension chief investment officer Paul Bucksey says: “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 per cent of our flagship growth fund has been invested in sustainable funds for a while now, and this investment coupled with other recent changes bring us to 100 per cent. We expect these investments will play a key role in achieving our 2040 net zero target.”
Smart Pension investment proposition manager Fiona Smith adds: “We’re delighted to be partnering with Mirova, a pioneer of green bond investment with deep expertise in the market and strong 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.”
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