The Fund is prohibited from investing in securities of weapon manufacturer.
This includes the manufacture of conventional weapons and weapons systems, controversial weapons (including nuclear, biological, and chemical weapons, cluster munitions, depleted uranium weapons, and landmines).
The Fund is prohibited from investing in securities of companies that produce, distribute, retail and supply tobacco products.
The Principles for Responsible Investment offer a menu of possible actions for incorporating ESG issues into investment practice.
The Principles for Responsible Investment were developed by an international group of institutional investors reflecting the increasing relevance of environmental, social, and corporate governance issues to investment practices. The process was convened by the United Nations Secretary-General.
More information can be found on the PRI website here.
The United Nations Joint Staff Pension Fund invested in the inaugural green bonds of the World Bank. The bonds raised funds for projects seeking to mitigate climate change or help affected people adapt to it.
Climate Action 100+ is an investor-led initiative to ensure the world’s largest corporate greenhouse gas emitters take necessary action on climate change.
More information can be found on the website here.
UNJSPF ranked #7 of the top 100 global pension funds as measured by the Asset Owners Disclosure Project (AODP).
The Asset Owners Disclosure Project (AODP) rates and ranks the world’s largest institutional investors and assesses their response to climate-related risks and opportunities. The ratings are made public, providing much-needed transparency for beneficiaries, clients, investors and stakeholders, and emphasized through advocacy and direct engagement to drive change.
UNJSPF ranked #17 of the top 500 global pension funds as measured by the Asset Owners Disclosure Project (AODP).
The Fund also obtained an A+ rating from the PRI.
The objective of our Sustainable Investing approach is to integrate ESG considerations in our investment decision-making process across all asset classes.
The UN Pension Fund released its first report explaining how it addresses the challenges caused by climate change on its investment activities.
With regard to governance, the report confirms that OIM’s climate-related decision making follows a well-structured channel of oversight. In terms of strategy, the report highlights that OIM recognizes both physical and transitional risks to the value of the assets of UNJSPF and has strategies to reduce these risks by reaching net-zero by 2050 and aligning with the IPCC 1.5°C scenario. OIM uses in-house methodologies and third parties to identify risks and uses divestment, engagement, and investment in transitioning companies to manage climate risks and take advantage of climate opportunities. OIM uses scopes 1, 2 and 3 emissions metrics to assess risks and has a target to reduce financed emissions by 40% by 2025 from 2019 levels for scopes 1 and 2.
More information can be found in the report here.
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.
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.
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.
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:
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.
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.