Taiwan’s Bureau of Labor Funds (BLF) has hired three UK and two US asset managers for a US$2.3 billion global climate change mandate tracking the Paris climate pact.
The UK firms are HSBC Global Asset Management, Legal & General Investment Management and Schroder Investment Management, and the US firms are Morgan Stanley Investment Management and Wellington Management Company, BLF says in a statement on June 24.
They will invest $2 billion on behalf of the Labor Pension Fund, Taiwan’s largest defined-contribution pension scheme and the biggest of the eight pension and annuity funds supervised by the BLF. The balance $300 million will be invested for the National Pension Insurance Fund, which covers old age and disability.
The BLF called bids for the Enhanced Global Climate Change Equity mandate on March 4.
It is the first mandate by an Asian pension fund that tracks the 2015 Paris Agreement on climate change. Signatories to the accord pledged to keep global warming during the 21st century well below 2 degrees Celsius above pre-industrial levels, and if possible, below 1.5 degrees Celsius, and achieve net zero carbon emissions by 2050.
The eight BLF funds had around NT$5.39 trillion ($181.2 billion) of combined assets as of April 2022.
