COVER STORY 7
to an inclusive green economy by supporting com- panies that develop solutions to urgent sustainability challenges.” His colleague Sørensen agrees: “Every investment creates an impact on society, whether it be positive or negative. Our aim is to make a lasting difference by backing companies able to deliver better social and environmental outcomes.” He con- cludes: “At the same time, the market continues to underestimate the cash flow generation potential for these solution providers, and this market inefficiency presents a sustainable value creation opportunity for fundamental long-term investors.”
long-term dialogue with Republic Services, the US provider of waste collection and disposal services, is a strong example of the group’s engagement efforts. Historically, Republic Services had been plagued by a poor ESG profile. However, during initial engage- ment efforts in 2019, NAM was encouraged by the CEO’s willingness to publish more transparent ESG data and targets, including 2030 sustainability goals. Subsequent engagement activities led to multiple ESG improvements, such as improved reporting that displays science-based targets and progress track- ing. The ESG score NAM assigned to Republic Ser- vices was upgraded from B to B+ over the first year of engagement, with third-party providers eventually noting the company’s improved ESG profile. While Republic Services has made solid strides in improving sustainability, NAM is committed to continued engagement to ensure the company remains on track to achieve its 2030 goals. It is also pushing for new targets to increase recycling and reduce landfill waste volumes, as well as a further reduction in toxic discharge. “We are convinced of the power of ‘investing with impact’,” says Padberg. “Through their investment, investors can contribute
Nordea 1 – Global Climate and Social Impact Fund
Thomas Sørensen and Henning Padberg
Managers
USD
Base currency
LU2355687059 (BP-USD) LU2355687216 (BI-USD)
ISIN
06.07.2021 (BP-USD, BI-USD)
Launch date
ISSUE 01.2022
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