COVER STORY 5
„ We aim to make a lasting
difference by backing companies able to deliver better social and environmental outcomes. Thomas Sørensen portfolio manager at Nordea Asset Management
numerous opportunities for companies that are able to provide solutions to the world’s most pressing sus- tainability challenges. By investing in listed equities, we want to allocate capital to deliver both sustained financial performance and positive impact.”1 Indeed, the investment opportunity in achieving the 2030 Sustainable Development Goals (SDGs) is un- precedented, with economic prospects worth at least USD 12trn a year by 2030. Investing in sustainable transportation – which is aligned to SDG 11, sustaina- ble cities and communities – is one such compelling opportunity, according to Sørensen and Padberg. The duo cites Central Japan Railway Company as a beneficiary of the planet’s sustainability drive. The second-largest rail operator in the Asian power- house, Central Japan Railway generates more than 80% of its revenues from the Tokaido Shinkansen high-speed train line, which connects the mega cities of Tokyo and Osaka. Compared to a passenger aircraft on the same route, the Shinkansen bullet train uses 88% less energy, while carbon emissions are 92% less per seat than its aviation equivalent. Even though the daily Tokyo-Osaka airline passenger capacity is just 6.25% of the Tokaido Shinkansen capacity, adopting a train-only approach could lead
Dedicated: with the right strategy, investors can truly make a difference and help change the world for the better.
the environmental and social megatrends. Unveiled last year, the Global Climate and Social Impact strategy is run by Thomas Sørensen and Henning Padberg, managers of NAM’s renowned Nordea 1 – Global Climate and Environment Fund . In populating the Global Climate and Social Impact portfolio, Sørensen and Padberg target companies at the forefront of an inclusive green economy. These in- vestments are aligned to four primary themes: health and wellbeing, inclusion and opportunity, sustainable living and the low-carbon economy. “The UN-backed concept of an inclusive green economy aims to im- prove human wellbeing and social equity, while sig- nificantly reducing environmental risks and ecological scarcities,” Sørensen says. “Alongside the multitude of benefits for people and the planet, there are also
At a glance ` Investing with impact is at the heart of the Nordea 1 – Global Climate and Social Impact Fund , which targets solutions addressing the world’s most pressing sustainability challenges ` Portfolio managers Thomas Sørensen and Henning Padberg allocate capital to solutions aligned to the 2030 Sustainable Development Goals ` A key tenet of the investing with impact process is corporate engagement – which is conducted alongside Nordea’s renowned Responsible Investments Team
1 There can be no warranty that an investment objective, targeted returns and results of an investment structure is achieved. The value of your investment can go up and down, and you could lose some or all of your invested money.
ISSUE 01.2022
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