ESG Phenomenon: Kempen Capital Management Lays Out Net Zero Plan, Avaloq's ESG Filter

Editorial Staff, 6 November 2020


We gather developments and commentary in and around the ESG investment space.

Dutch asset manager Kempen Capital Management has laid out a timeframe and objectives for becoming a net-zero investor by 2050. Announcing details of policy changes on Monday, the firm said that short-term objectives will include increasing investment in green bonds, more focus on active management of climate commitments and, more immediately, widening exclusions to cover coal and tar sands.

As more firms embrace climate change objectives and become more transparent about the path they are taking to achieve net zero, Kempen said that its 2025 objectives include aligning with the Paris Accord and the Dutch Climate Agreement (Klimaatakkoord) goals for all listed investments. For sustainable and impact investments Kempen, which manages around €79 billion in client assets, will seek alignment with EU Benchmarks or equivalent. The Amsterdam firm said that it is extending its bond policy to include sustainability-linked bonds, transition bonds and SDG-linked bonds.

In the next couple of years, the firm will apply exclusions on coal and tar sands across investments and stop investing in pure coal players where the majority of their revenues come from coal mining or tar sands. Within sustainable and impact funds, the firm said that it will no longer invest in companies which obtain any of their revenues from coal or tar sands.

Narina Mnatsakanian, director sustainable and impact Investment at Kempen, said: “Kempen has a longstanding commitment to addressing climate change through active management, and our new policies with net zero targets provide a clear framework to enable us to do so.”

As ESG investment continues to heat up, global fintech Avaloq has launched an investment tool that allows banks and wealth managers to build tailored ESG-compliant portfolios.

Its solution uses a range of third-party data feeds and intuitive functionality to allow advisors to match client needs more easily. Features include a range of filters and tools that can set “green” benchmarks, exclusions, and screen products and thematic investments to align with the UN Global Compact or OECD guidelines.

The growth in sustainability products and more regulation on ESG through proposed MiFID II amendments all point to wealth managers having to take more account of client’s ESG preferences.

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