Looking within
WINNER
“Very interesting and specific approach to investing in the energy transition. High portion of real assets in the asset allocation with dedicated approach” judge’s comment
Country |
Austria |
Founded |
1999 |
Type |
Defined contribution |
Members |
234,926 (active, including deferred) |
Assets |
€1318.94m |
Performance |
0.33% (1yr)2.37% (3yr) |
● Over the past 12 months, Bundespensionskasse (BPK) has reshaped its investment policy to align directly with the 2015 Paris Agreement. In addition to making a positive impact on the global economy, this decision also allows the fund to benefit from myriad opportunities have arisen from the structural shift towards renewable energy sources and carbon neutrality more generally.
● BPK has also continued its strategy of investing into metals and mining companies, as materials such as copper are among the core components for the development of energy transition technology. However, the fund notes the ESG risks related to mining companies and works with underlying fund providers to include a UN Global Compact violation check besides any pre-existing proprietary ESG scoring systems.
● Having recognised the role of real estate in the push toward net zero, as well as a lack of funds in this sector that align with EU’s Sustainable Finance Taxonomy, BPK elected to become the sole investor in a real estate fund. This allowed the team to implement ideas such as fossil-free cooling and energy management systems, thereby reducing carbon footprints and futureproofing residential living.
STRATEGIC TAKEAWAYS
➤ Heavy focus on renewable energy and global net zero target |
➤ Increased exposure to metals and mining assets necessary for energy transition |
➤ Engagement with asset managers to ensure EU Sustainable Finance Taxonomy alignment |
WINNER
“A convincing and innovate approach, alongside improved online services that add value for clients. Good to see the organisation is focused on climate-responsible action,” judge’s comment
Country |
Austria |
Founded |
|
Type |
Defined contribution |
Members |
1,279,458(active, including deferred) |
Assets |
€13,570m |
Performance |
-9.68% (1yr) |
● In 2020, VBV Group committed to six strategic investment goals regarding sustainability, five of which are derived from the UN Sustainable Development Goals. These include targets related to living standards, climate action, and investment in health and wellbeing.
● The group is a member of Austria’s first climate protection coalition, the Green Finance Alliance, and in May 2022 reaffirmed its commitment to green finance and delivering upon the targets set within the Paris Agreement. Additionally, VBV has taken direct action to deliver upon its own climate-related targets, including commissioning an external report on the sustainability of the group’s office operations. It became the first Austrian company to sign up to the Finance for Biodiversity Foundation’s ‘Finance for Biodiversity Pledge’.
● In the summer of 2023, VBV developed ‘IT-Firmenpension plus’, an innovative new pension fund model aimed at companies that are subject to the IT sector’s collective agreement and want to financially support employees through pension provision.
STRATEGIC TAKEAWAYS
➤ Industry leader in sustainability related pension schemes in Austria |
➤ Internal review of sustainability and net zero policies |
➤ Investments in technology to improve online services for members |
HIGHLY COMMENDED
Country |
Austria |
AUM |
€5,339m |
Performance |
-10.6% (1yr); |
APK Pensionskasse made several significant changes to its real estate portfolio last year, in part because of the high correlation between equity and bond market performance and the impact this had on relative allocations to real estate. It enacted a series of sector rotations, such as switching out of retail and office spaces and into logistics and residential, as well as adding to debt funds to balance the income-generating side of the portfolio.
Judged by
Christian Böhm
Georg Inderst
Waltraud Viehböck
Christian Winder
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