Luxembourg, LU, 9 September 2024— Nordea Asset Management (NAM) is honored to announce the California State Teachers’ Retirement System (CalSTRS), one of the largest public pension plans in the world, has selected Nordea’s Global Stars Equity Strategy to manage $450 million in global equity investments.

The Global Stars Equity Strategy is managed by NAM’s Fundamental Equities Team, which is responsible for the firm’s ESG STARS equity family and sustainable thematic range. The team employs a sustainability-focused approach that integrates ESG risk factors into all fundamental investment decisions, and works hand-in-hand with NAM’s Responsible Investments Team, one of the largest and longest-standing in Europe. This close collaboration ensures that companies are assessed for their contributions to environmental, social and governance objectives alongside traditional financial criteria.

In addition to full ESG integration, all of NAM’s ESG STARS equity strategies are net zero aligned to help investors decarbonize their portfolios. The Global Stars Equity Strategy offers investors an immediate reduction in carbon emissions relative to a benchmark investment — its carbon footprint is currently 61% below the MSCI ACWI benchmark1.

“We are honored to have been selected by CalSTRS to manage a portion of its Sustainability-Focused Equity portfolio through our Global Stars Equity Strategy. 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.”

— Nils Bolmstrand, CEO of Nordea Asset Management

“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.”

— Kirsty Jenkinson, Investment Director of CalSTRS

Since July 2023, CalSTRS has partnered with NAM on a critical Engagement Initiative aimed at encouraging investee companies to join the Oil and Gas Methane Partnership 2.0 (OGMP 2.0), a key framework to reduce global methane emissions. OGMP 2.0. member companies commit to set methane emissions targets in line with a 45% reduction by 2025 and 60-75% by 2030. The engagement is ongoing. To date, 14 of 65 target companies have adopted the OGMP 2.0 framework after engagement by investors participating in the Engagement Initiative, which includes 17 asset owners, one asset manager and one investment advisor, representing over EUR 3.7 trillion in AUM.

As an early signatory to Net Zero Asset Managers Initiative, NAM is committed to supporting the goal of net zero greenhouse gas emissions by 2050 or sooner. The firm welcomes collaborative engagements alongside asset owners across the investment spectrum.