The Brunel Pension Partnership has handed a £325m specialist climate and environment equity mandate to Nordea Asset Management.
The mandate - which forms part of Brunel's new sustainable equities offering - will be run by Nordea's Thomas Sørensen and Henning Padberg, who co-manage the Nordea Global Climate and Environment strategy.
The mandate is the Finnish firm's largest single climate and environment-focused segregated mandate and is the largest ever client mandate awarded to Nordea in the UK.
Co-head of UK institutional and wholesale distribution at Nordea AM David Crawford said the win was "testament to the continued trust UK investors are placing in Nordea".
"Building on the success of our GBP Diversified Return strategy, we have expanded the reach of our range of specialist offerings to further meet the needs of our broad client base.
"These solutions include the Climate and Environment strategy, our ESG STARS equity and bond strategies, as well as our Alpha 10 and Alpha 15 multi-asset vehicles."
Nordea said its UK business had expanded rapidly in recent years, following the success of the UK version of its renowned Stable Return strategy.
The portfolio will target three main investment areas in climate and environment: innovators within the alternative energy sector, companies aiming at resource efficiency, and adapters focusing on environment protection.
The global climate and environment strategy run by Sørensen and Padberg launched almost 13 years ago.
Nordea AM chief executive Nils Bolmstrand said the firm had been at the forefront of investing in companies that are changing the world for the better and transitioning to a more sustainable society.
"We are at a crucial period for a global response to climate and environmental challenges, and we look forward to working with Brunel in pursuing a more sustainable world," he added.
Brunel said the new portfolio would give local government pension funds exposure to strategies targeting solutions to sustainability issues, as well as benefits to society as a whole.
"We were delighted to find managers who share our understanding of sustainability, embedding it deep into their culture and investment processes," said Brunel sustainable equities fund portfolio manager David Jenkins.
"This portfolio therefore meets our aspiration to go beyond traditional responsible investing and ensure that the managers are engaged with the companies and are investing in them for positive reasons, not simply focusing on negative exclusions."
Sørensen and Padberg added: "We have witnessed a massive shift within the corporate sector, where climate, environment and sustainability have become major drivers of corporate strategy and product development.
"While many climate and environment discussions remain political in nature, we believe consumers and corporates are a far more important driver today. Evolving consumer expectations are incredibly powerful and are powering the momentum in environmentally sustainable solutions."
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