SDI-AOP data to be used to build institutional mandate

We are thrilled that SDI AOP founding partner APG, in cooperation with asset manager BlackRock and Qontigo have launched the iSTOXX Family of Innovative Responsible Indices (iSTOXX APG RI Index Family).. It is the first time that the SDI AOP data is used to build investable indices for Sustainable Development Investments (SDI). 

The iSTOXX APG World Responsible Low-Carbon SDI Index will be used for a Sustainable Development Investments (SDI) mandate managed by APG Asset Management in collaboration with BlackRock, with an initial investment of approximately EUR 1 billion.

The indices were built using APG’s data sets, including one derived from the Sustainable Development Investments Asset Owner Platform (SDI AOP) representing investors managing over EUR 1.1 trillion. It is the first time that the SDI AOP data are used to build investable indices. The development of the iSTOXX APG RI Index Family 1 is a clear result of APG’s and its pension funds clients’ ambition to steer increasing amounts of capital towards solutions contributing to the SDGs. It aligns with the objectives of pension fund clients who have set clear goals as to what extent their investments need to contribute to the SDGs. APG is a leading long-term responsible investor. To maintain that leading position worldwide, APG wants to excel in aligning its portfolio with responsible investment (RI) ambitions and continue to set standards globally, together with like-minded peers. APG aims to promote ESG thought leadership inside and outside of its organization. This includes investing in the SDGs, extending the SDI platform, focusing on ensuring RI contributes to better returns, and aligning its portfolio with the Paris Climate Agreement.

Ronald van Dijk – Managing Director at APG Asset Management: “Pension funds often ask why indices are a good solution when wanting to invest responsibly. Asset managers who are leading in responsible investing can meet this growing demand for tailored, sustainability-based index products that contribute to the SDGs and other ESG goals. APG keeps these ESG metrics relevant, inspired by the fast�growing ambitions of our clients. Our aim is to contribute to a global standard for investing in SDGs, and these new responsible SDI indices reflect this goal.”

Monique Donders, Country Head BlackRock Netherlands: “We are pleased to partner with APG and Qontigo in developing and managing this cost efficient, transparent and customized STOXX index solution. APG has been at the forefront of asset owners globally seeking to use their investments to help achieve the UN Sustainable Development Goals. Managing such a sustainability-driven mandate requires close coordination, detailed risk management and scale. We believe this flexible, data-led approach holds great promise to become the standard as the investment industry continues to convert its responsible investment ambitions to concrete actions.”

Read the entire press release here.