Sustainable Investing

Our Sustainable Investing approach addresses environmental, social and governance (ESG) challenges that may affect the long-term sustainability of the Fund, in line with our fiduciary responsibility to meet our Long-Term Return Objective

Our Sustainable History

  • 1948
  • 1960
  • 2006
  • 2008
  • 2014
  • 2017
  • 2018
  • 2019
  • 2020
  • 2021
  • 2022
  • Restrictions of Weapons

    The Fund is prohibited from investing in securities of weapon manufacturer.
  • Restriction of Tobacco

    The Fund is prohibited from investing in securities of companies that produce, distribute, retail and supply tobacco products.
  • Founding Signatory of the Principles for Responsible Investing (PRI)

    The Principles for Responsible Investment offer a menu of possible actions for incorporating ESG issues into investment practice. 
  • Invested in the World Bank’s inaugural green bond

    The United Nations Joint Staff Pension Fund invested in the inaugural green bonds of the World Bank.
  • Joined Climate Action 100+. The UNJSPF ranked #17 out of 500 in the Global Climate Index by the Asset Owners Disclosure Project

    Climate Action 100+ is an investor-led initiative to ensure the world’s largest corporate greenhouse gas emitters take necessary action on climate change. 
  • ESG Integration Strategy across all assets. Signed the Tobacco-free finance pledge.

    The objective of our Sustainable Investing approach is to integrate ESG considerations in our investment decision-making process across all asset classes.
  • Joined GRESB as a member for Real Estate investments. Integration of ESG into the OIM Investment Policy Statement (IPS)

    GRESB as benchmark for Core Real Estate - Thermal Coal Divestiture - Integration of ESG into the OIM Investment Policy Statement (IPS)
  • Divestment for Thermal coal and coal energy sector across all asset classes. Joined the Net-Zero Asset Owner Alliance

    Committed to implement recommendations of the TCFD - Joined the Net-Zero Asset Owner Alliance
  • Publication of the UNJSPF first TCFD report

    The UN Pension Fund released its first report explaining how it addresses the challenges caused by climate change on its investment activities. 

Achievements and Targets

The UNJSPF is at the forefront of Sustainable Investing

From restrictions to investing in tobacco and armaments decades ago, to setting ambitious carbon reduction targets in 2021, the UNJSPF has historically integrated sustainability issues in its investment approach


The UNJSPF has established a comprehensive framework for its activities

The Fund has various policies, tools, and resources to pursue its sustainable ambitions. It has established sound governance practices to frame its undertakings.

Active Ownership Activities

The UNJSPF is an active steward of its investments

The Fund is pursuing a dialogue strategy in line with is other commitments. An active sustainable voting policy combined with an engagement approach creates more effective and sustainable impact. 

Net zero GHG emissions by 2050
  • Climate is at the center of our investment strategy: we want to actively  take action to contribute to the achievement of the Paris agreement on reducing CO2 emissions, as per the UN Secretary-General’s guidance, and reduce our portfolio risk associated with climate change. Our goal is to ensure the long-term sustainability of the Pension Fund. Reducing our exposure to climate change affected segments, such as fossil fuels, is an important step to achieve these goals. We also want to set the right example in the investment community and send a message to encourage companies to formulate clear, actionable climate change response strategies. 
  • The Fund successfully achieved its pledge to reduce the absolute greenhouse gas footprint of its Equities and Corporate Bonds’ Portfolios by 29% in 2021 compared to the 2019 level.  The fund’s 2025 target is to achieve a 40% reduction compared to the 2019 level.  
Fossil Fuel Divestment

The UNJSPF excluded fossil fuels from its investment portfolio (equities and bonds). Under this implementation in 2021, more than $2bn of Assets under Management (AUMs) of the UNJSPF were divested from this sector.

· The objective of ensuring the long-term sustainability of the UN Pension Fund participants, beneficiaries and retirees is no longer compatible with investing in fossil fuels. Given the strong pressure from policymakers and the civil society regarding climate change risks and greater support from corporates globally, fossil fuels are becoming stranded assets, with greatly diminished long-term value.

· Adhering to this new policy, the UN Pension Fund encourages fossil fuel companies to accelerate the pace of transition towards a low-carbon business model and contribute towards the achievement of the objectives of the Paris Agreement.

· The divestment decision targeted all businesses in the fossil fuel value chain - extraction and production, pipelines and transportation, equipment and services, refining, petrochemicals, trading, and distribution and retail. There will be no new investments in these businesses; only companies which are transitioning their business models towards a low carbon economy will be considered for investment. In the case of Private Markets, no new investments are allowed - in non-transitioning fossil fuel assets.

ESG integration into the investment process

Sustainable considerations are integrated into portfolio construction. OIM's sustainable investment strategy includes material ESG considerations that are being integrated throughout the entire investment decision-making process. Our sustainable investment approach is based on three pillars: 

  • Exclusionary: Prohibits investments in tobacco, weapons, and fossil fuels across the Fund’s assets 
  • ESG integration: incorporation of ESG metrics in security selection across public equities and bonds.  ESG due diligence for private market investments 
  • Post-investment activities: with external partners, we conduct proxy voting and engagement activities across our holdings 
Internal and external resources
The Investment Policy Statement (IPS) was updated in 2019 to integrate Sustainable considerations. Furthermore, each asset class has its own ESG Sustainable Investing Guidelines.  The Sustainable Investing team is composed of 4 team members and consults with the following external entities to help implement our strategy:  
  • MSCI ESG Manager: online ESG research and analytics platform designed to provide tools to manage research, analysis, and compliance tasks across ESG factors, include climate 
  • ISS: proxy voting services which provide OIM with robust and auditable system that is consistent with OIM’s proxy voting policy and enhancing the integrity of OIM’s proxy voting arrangements 
  • Hermes EOS: engagement services. Allows us to be active owners of our assets, through dialogue with companies on environmental, social and governance issues 
  • Entelligent: provides  climate data and TCFD support 
  • RepRisk: ESG data (reputational risk) on public and private companies 
Additionally, we developed ESG Reporting Suites to assist us in the investment decision-making process at the  pre-investment and post-investment phases  which allow us to track our progress.   We believe that on-going training is an integral part of the ESG integration process into our portfolio and therefore, readily instruct all investment officers on efficient use of our  ESG datasets. Our goal is to have all  our Investment Officers attain  ESG certification this year.
Proxy Voting

The Fund adheres to sustainable investment proxy voting guidelines in partnership with a leading global provider. OIM’s sustainable voting policy generally references globally recognized sustainability-related initiatives such as the Principles for Responsible Invest

practices, non-discrimination, the protection of human rights, and gender diversity on boards, among other objectives. They advance positive corporate ESG actions which promote practices that mitigate financial and reputational risk.


OIM is committed to a tangible impact in a real-world setting and is cognizant that in the climate related arena in particular, divestment alone does not reduce real world carbon emissions.  Therefore,  OIM resorts to engagement in a structured dialogue with a given company and attempts to influence the way it conducts its business.  

OIM believes that direct and collaborative engagement can drive change in the way companies conduct their business activities which leads to tangible improvements. We engage with companies via our partner, Hermes EOS. 

Memberships and Networks

The Fund is a member of several groups and initiatives:
  • Founding signatory (2006) of the UN-supported network of investors, the Principles for Responsible Investment (PRI)
  • Participation in Climate Investor networks: Ceres Investor Network and Climate Action 100+ since 2019
  • Use of GRESB as a benchmark for core real estate since 2019
  • Member of the Net-Zero Asset Owner Alliance, a group of asset owners targeting net-zero GHG emissions by 2050.
Net-Zero Asset Owner Alliance

Summary of 2021 Engagement Activities (conducted by our engagement manager)


We engaged with 511 companies over the last year.


Environmental topics featured in 26.3% of our engagements over the last year.

Social & Ethical

Social and Ethical topics featured in 17.6% of our engagements over the last year.


Governance topics featured in 44.3% of our engagements over the last year.

Strategy, Risk and Communication

Strategy, Risk and Communication topics featured in 15.7% of our engagements over the last year.

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