Northern Europe-based asset manager Nordea Asset Management announced that it been awarded a $450 million sustainability-focused global equity investment mandate by the California State Teachers’ Retirement System (CalSTRS), one of the largest public pension funds in the U.S.

Under the new mandate, Nordea’s Global Stars Equity Strategy to manage a portion of ClasSTRS’ Sustainability-Focused Equity portfolio. Nordea’s STARS range features ESG integration into all fundamental investment decisions, with close coordination between portfolio managers and the firm’s Responsible Investment Team.

The STARS equity strategies are also net zero aligned, and offer investors with an immediate reduction in carbon emissions relative to a benchmark investment, with Nordea noting that the strategy’s carbon footprint is currently 61% below the MSCI ACWI benchmark.

Nils Bolmstrand, CEO of Nordea Asset Management, said:

“For over three decades, we have been successfully developing solutions designed to deliver attractive long-term returns while bringing about positive impact. Sustainable Investment is an essential part of our Nordic DNA, and we look forward to supporting CalSTRS with our distinct investment approach to deliver returns with responsibility.”

CalSTRS has set a series of sustainability-related investment targets over the past few years, including a commitment in 2021 to achieve a net zero emissions portfolio by 2050, and a pledge the following year to reduce greenhouse gas emissions across its portfolio in half by 2030.

Kirsty Jenkinson, Investment Director of CalSTR, said:

“We are excited to expand our relationship with the team at Nordea Asset Management. The sustainability-focused approach of the Global Stars Equity Strategy aligns closely with the mandate of the Sustainable Investment and Stewardship Strategies Portfolio. Additionally, Nordea has been a valuable partner in our stewardship efforts focused on meeting our pledge to achieve a net zero portfolio by 2050 or sooner.”