ABP Comes Closer to Reaching Sustainability Goals

By tweaking requirements for big carbon emission companies and sectors, the Netherlands’ biggest pension fund is on track to meeting the United Nations’ sustainability targets as well as its own.

In its most recent environmental, social, and governance (ESG) report, the $482 billion ABP’s sustainable goal-related investments increased by $6.3 billion last year, totaling $62.3 billion, or 14% of the entire portfolio. This is only $2.6 billion shy of its $64.9 target for next year.

One of ABP’s big focuses is in green bonds, or a debt that goes toward the funding of sustainable projects, such as infrastructure. Its green bond investments grew by $2.4 billion last year, to $6.1 billion. It is now invested in 141 types of green government bonds.

Last year, the civil service retirement fund cut its carbon-related investments to 25% of what they were in 2014. These occurred by both selling carbon-emitters and buying more environmentally friendly companies’ stocks.

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ABP analyzed the sustainable credentials for 7,700 out of 10,000 businesses. It added 150 companies and other investments, such as South Sudan’s government bonds, to its exclusion list. This resulted in the divestment from various tobacco and nuclear arms firms.

The fund also excluded PetroChina, Tokyo Electric Power, and Walmart due to their flouting of the UN’s Global Compact, which wants to end violations of human rights and the environment in corporate practices.

ABP also upped its renewable assets to $5.4 billion during 2018, bringing it just $111 million shy of its 2020 target. These holding were about 11% of its energy portfolio at year-end.

ABP’s green push is in line with that of the UN’s Sustainable Development Goals, a 17-item directive geared to producing sustainability, ending poverty, promoting diversity, and others causes.

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Tags: ABP, ESG, Green Bonds, Pension, Sustainability

Willis Towers Watson Names US Delegated DC Chief

Willis Towers Watson announced the appointment of Michele Brennan as US Delegated Defined Contribution (DC) Plan Solutions leader. Brennan is based in Chicago and reports to Clint Cary, US head of Delegated Investment Solutions.

Brennan has 25 years of experience in various consultant relations, business development, marketing, and client servicing roles in the financial services industry. In this newly created position, Brennan will lead the development of delegated investment value propositions and solutions for DC plan sponsors in the US.

Prior to joining Willis Towers Watson, Brennan served as executive director, client relations at UBS Asset Management with DC leadership responsibilities in UBS’s consultant relations team. Brennan also held senior distribution positions at AMG Funds and Skyline Asset Management. She graduated from the University of Dayton, where she earned a Bachelor of Science degree in business administration.

FCA Announces Leadership Change

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Fiat Chrysler Automobiles announced the appointment of Massimiliano “Max” Trantini as president of Guangzhou Automobile Group (GAC) Fiat Chrysler Automobiles Sales Co., Ltd., its sales company with GAC in China.

Trantini brings deep industry experience to this role, with prior positions that include chief executive officer (CEO) at Getrag Jiangxi Transmissions, CEO at the transmission joint venture company between FCA and GAC, and, most recently, director of China business for FCA.

The move is part of ongoing actions FCA is taking to improve the competitiveness of its business in China.

The appointment is effective immediately. Daphne Zheng, currently president of the sales company and FCA’s chief operating Officer for China, is leaving the group.

RiskFirst Steps Up US Presence

RiskFirst has hired Amanda Flemming into a new role, as US Client Delivery Manager, focused on client success.

Flemming will focus on ensuring clients gain maximum value from PFaroe, RiskFirst’s market-leading asset, liability, and risk management technology platform.

As RiskFirst continues to expand its presence in the US, Flemming brings a wealth of industry knowledge and experience from her 14 years at NEPC, where she provided investment advice to a varied client portfolio and had responsibility for key technology implementations, including PFaroe, which NEPC adopted in 2015.

“Amanda’s experience of the US pensions industry, and of PFaroe, will bring an invaluable client perspective to the role,” said Matthew Seymour, CEO of RiskFirst. “She will work closely with clients to understand and help grow their businesses by integrating PFaroe’s unrivalled capabilities, adding real value to their businesses. Amanda’s appointment is part of RiskFirst’s commitment to strengthening our capabilities in the US, as well as delivering exceptional service.”

Tags: Fiat Chrysler Automobiles, People Moves, RiskFirst, Willis Towers Watson