Banca March and Allianz Global Investors step up commitment to sustainability and launch a fund investing in bonds which support the green transition
31 January 2022 Category: Sustainability
Banca March and Allianz Global Investors step up their commitment to sustainable investment with the launch of an innovative fixed income solution.
- March Green Transition Bond is a multi-sector, diversified fixed income fund which invests in companies, issuances and countries which support the green transition - committing to decarbonisation and protecting the environment - through investments in green bonds, SBTi and emerging markets.
- This strategy is co-designed by Banca March and Allianz Global Investors, and was created with a view to financing the transition towards a sustainable economic and social model.
- The agreement is part of the strategy of partnering with leading global asset managers kicked off by Banca March in 2018, and the fund joins the range of products launched in partnership with specialists in the energy transition, impact investing and sustainable investment, such as Amundi-CPR, Tikehau and Robeco.
Banca March and Allianz Global Investors have stepped up their commitment to sustainable investment by launching an innovative fixed income solution which seeks, primarily, to finance projects which promote decarbonisation and protect the environment, contributing to a green transition of the global economy. March Green Transition Bond invests in a multi-sector, diversified portfolio of corporate bonds issued under Science Based Target initiative (SBTi), green bonds and debt issued by emerging countries with robust climate and environmental commitments. Portfolio duration will be high, as the intention is to support these companies and countries in achieving their goals in the transition towards a greener world by investing in these long-dated bonds.
By investing in green bonds, the financial institution's customers can help fund green initiatives – which are selected based on an internal classification based on the Climate Bond Initiative – and offer a strong level of transparency in terms of impact traceability. Examples of initiatives in the field include renewable energies, pollution prevention, clean transport, waste management and green buildings.
In addition, investing in bonds issued by companies which are rolling out decarbonisation plans in line with the Science Based Target initiative (SBTi) – a global initiative which uses climate science-based targets to provide companies with a clearly-defined path for their transformation in line with the Paris Agreement – helps these companies to achieve their decarbonisation targets, in accordance with their business models and sectors, to position them as winners in the fight against climate change.
Finally, the portfolio comprises government debt issued by emerging markets which are undergoing a transformation process and rolling out a sustainable economic growth model. For these bonds to be included in the portfolio, a rigorous analysis must be undertaken of the country's current situation, its transformation plans and its capacity to implement those plans.
The strategy is co-designed by Banca March and Allianz Global Investors, one of the world's largest active asset managers and a specialist in sustainability and the energy transition. The agreement is part of the strategy of partnering with leading global asset managers launched by Banca March in 2018, and the fund joins the range of products launched in partnership with specialists in the energy transition, impact investing and sustainable investment, such as Amundi-CPR, Tikehau and Robeco.
Transition to a green economy
Banca March's commitment to sustainability is evident in every area of its activity. Banca March, along with the entire March Group, is a signatory to the UN Global Compact, the world's most ambitious corporate sustainability initiative. Along with 690 Spanish organisations and 1,590 worldwide, it seeks to align its objectives with policies and programmes that support partnerships with governments, civil society and the private sector to achieve the goals set out in the United Nations 2030 Agenda.
As well as using its resources sustainably, Banca March also seeks to promote investment in sectors with effective environmental management strategies in place. For over 90 years, in keeping with its unwavering commitment to seeking shared growth with customers, employees, shareholders and society as a whole, Banca March has harnessed transformation processes to generate growth opportunities and new ways of investing and saving responsibly. The bank's commitment to responsible, sustainable investments is part of its vision of a new cycle that will be heavily influenced by technology, digitalisation and sustainability.
In recent years, Banca March has launched innovative, alternative investment and financing solutions which seek an optimal balance of sustainability and performance, including Next Generation, which invests in mega-trends, Mediterranean Fund, an environmental thematic fund which donates 10% of its management fee to marine ecosystem conservation and recovery projects, and the investment of over €420 million in sustainable financing for energy efficiency projects with hotel companies.