Delta Lloyd : ESG Fund cuts carbon emissions by 50% thanks to stricter criteria

Following the introduction of a new investment method, the Delta Lloyd ESG Fund, which has more than € 2 billion in assets under management, is now ranked one of the best-performing global equity funds in terms of sustainability. One of the results of the new approach is a 50% reduction in harmful greenhouse gas emissions compared to the MSCI World Index, the relevant benchmark; this reduction has mainly been brought about by the positive selection of companies that contribute to carbon-reducing solutions.

Encouraging transition
Both customers and Delta Lloyd itself are attaching increasing importance to investing in a sustainable future. In this context, it is not just about 'cherry-picking' the most sustainable investments, but also about actually fostering a transition. The investment policy of the Delta Lloyd investment funds was already 100 percent socially responsible and the funds applied universal sustainability standards. Based on Delta Lloyd Asset Management's vision of sustainability, the criteria have now become even stricter, specifically when it comes to Delta Lloyd themes such as climate change, human rights and good governance. Jacco Maters, CEO of Delta Lloyd Asset Management: 'Sustainable investing is the logical next step from responsible investing. That goes beyond simply excluding excesses. What it's about is that we want to contribute to the transition to a sustainable society by rewarding the most sustainable companies.'

Sustainability without added costs
The Delta Lloyd ESG Fund, which used to be called the Delta Lloyd Global Equity Index Fund, focuses on businesses that think ahead: businesses that contribute to the energy transition, for instance, or create a healthy work environment for their employees. As it did before, the fund will continue to qualify as an index tracker fund, which Delta Lloyd will then subject to strict selection criteria. As a result, of the about 1,650 companies included in the index, some 600 are excluded because they do not properly match the chosen sustainability philosophy. In addition, more investments are made in companies that have a sustainable vision of the future. That said, the performance targets and risk statistics will be in line with the MSCI World Index and the adjustment does not come at additional cost to customers. Jacco Maters: 'Thanks to this new fund, we will bring about a significant ESG impact at lower costs, while maintaining similar performance targets. At Delta Lloyd, we are driven by the belief that sustainability should be the rule, rather than the exception.'

The Delta Lloyd ESG Fund is open to institutional clients and is part of the Delta Lloyd pension propositions.