Fri, May 24, 2019
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

PGGM pushes finance to rethink how ESG/impact investing is viewed

Friday, March 08, 2019

Bailey McCann, Opalesque New York:

When Dutch pension fund PGGM set the goal of €20 billion invested in impact/ESG solutions by 2020, the organization recognized that it would have to do a lot of the work around metrics on its own. Speaking at the recent Opalesque Netherlands Roundtable, Piet Klop, Senior Advisor Responsible Investment at PGGM Investments said that his team also had to shift the conversation around ESG/impact investing to help people understand the value.

"When we speak about ESG, we try to present issues as not-yet-financial rather than as non-financial or extra-financial," Klop says. "That little tick tends to draw in a whole new audience." By changing the viewpoint, Klop and his team can overcome the view that ESG/impact is more philanthropic - a nice to have, but not a distinct set of performance factors.

Framing ESG/impact issues as 'not-yet-financial' also helps the organization think through how to invest in solutions that may not yet be of institutional size. "Right now, we haughtily dismiss everything that's not 50 or 100 million euro already. Or if there's not a 20-year data or track record, then don't bother, try the other guy," Klop explains. "But that way we're always investing in yesterday's economy, no? New ideas are rarely a 100 million investment opportunity right away or come with 20 years of data."

In response, PGGM set up a €500 million sub-mandate that allows the pension to invest in smaller private equity ......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Redemptions hit quant king AQR in performance slump[more]

    From Financial News: AQR Capital Management, one of the biggest quantitative fund managers, is undergoing a prolonged performance downturn that has led to investors withdrawing increasing amounts in 2019. The Connecticut-based firm, which manages both hedge funds and mainstream long-only funds,

  2. Investing: Hotshot active fund managers will soon have a way to play the ETF game, US hedge fund Coatue may lead $120m funding in Faasos parent, David Tepper's Appaloosa sharply boosts bet on U.S. stocks, 3 big-name pot stocks money managers dumped in the first quarter, Secretive investment firm Lone Pine Capital is quietly minting tech unicorns in Seattle, Hedge fund Marshall Wace is a secret winner in the Amazon-led $575m funding round for food-delivery company Deliveroo[more]

    Hotshot active fund managers will soon have a way to play the ETF game From CNBC: ActiveShares, a product built by financial innovation firm Precidian Investments, received an SEC nod that its so-called nontransparent ETFs should be approved. A marked break from the norm, nontransparent

  3. Tech: 'It's a cat-and-mouse game': The head of technology at $60bn hedge fund Two Sigma explains why cybersecurity is a bigger challenge than AI, Computer models won't beat the stock market any time soon[more]

    'It's a cat-and-mouse game': The head of technology at $60bn hedge fund Two Sigma explains why cybersecurity is a bigger challenge than AI From Business Insider: A big part of Alfred Spector's job is to think about the future. Spector, the chief technology officer at Two Sigma and head

  4. Activists: Voce Capital drops proxy fight with insurer Argo Group, Blackstone battles Elliott for QEP, Sony CEO stresses value of Sony pictures entertainment at strategy briefing[more]

    Voce Capital drops proxy fight with insurer Argo Group From Express News: San Francisco hedge fund Voce Capital Management has dropped its proxy fight with Argo Group International Holdings, the specialty insurance company that has its U.S headquarters in San Antonio. Voce blamed A

  5. People: Hedge funds raid BNP's shuttered prop desk amid talent race[more]

    From Bloomberg: BNP Paribas SA's closure of its proprietary-trading desk has triggered a hiring frenzy for the world's biggest hedge funds. Citadel has recruited Mathieu Gaveau, who was head of rates at BNP's Opera Trading Capital division until it was shut down in January. Paolo Nicolosi, a se