Schroders Capital to manage €100m multi-private assets impact portfolio for Barmenia

Schroders Capital has been chosen to manage a EUR 100 million portfolio composed of impact-focused investments in private equity, sustainable infrastructure, and climate insurance, for German insurance carrier Barmenia.

Under the arrangement, Schroders Capital establishes a multi-private asset portfolio for Barmenia classified as Article 9 under the European Union’s Sustainable Finance Disclosure Regulation (SFDR).

The mandate aims to target specific Sustainable Development Goals (SDGs), and it’s expected that the impact-focused investment portfolio will be fully invested within the next 36 months.

Schroders Capital explains that both the sustainability and impact objectives will be key across the entire portfolio and be reinforced by investments into two funds that will be managed by pioneer in impact investing, BlueOrchard, which is part of the Schroders Group.

Georg Wunderlin, Global Head of Private Assets at Schroders Capital, commented, “We are delighted that Barmenia has placed its trust in us as we look to support their efforts in making the German economy more sustainable. Schroders Capital aims to invest in attractive companies that make a positive contribution to climate change and resource efficiency.

“With our multi-private assets platform, we not only offer a diversified private assets approach, but can also provide customised solutions to our clients.

“Schroders Capital’s mission is to develop sustainable solutions for clients tapping into a broad range of private market strategies, managed by our specialist teams with long-standing track records. Alongside deep expertise in private equity and infrastructure, BlueOrchard is an impact specialist with over 20 years of experience that we will draw on for this mandate. We are pleased to once again demonstrate our expertise with this mandate.”

Andreas Eurich, Chairman of the Board of Management of Barmenia, said, “We are sustainable by conviction. We translate this focus into financing innovations and long-term investments in sustainable financial markets. We are very proud to have reached another milestone in our commitment to sustainability with our first impact mandate of this kind.”

As explained by Schroders Capital, the goal of the mandate is to make a positive contribution to climate change, resource efficiency and the fulfilment of a range of the UN’s SDGs.

All in all, there’s 17 SDGs outlined by the UN, and this mandate aims to meet the following in particular: Number 6 (Clean Water and Sanitation); Number 7 (Affordable and Clean Energy); Number 9 (Industry, Innovation and Infrastructure); Number 11 (Sustainable Cities and Communities); Number 12 (Responsible Consumption and Production); Number 13 (Climate Action).

For Barmenia, the mandate with Schroders Capital enables it to further expand its sustainability commitments. Rating agency Assekurata recently certified the carrier’s very good sustainability performance and awarded it a rating of AA (very good) for its ESG rating procedure.

Carola Schroeder, member of the Barmenia Management Board, commented, “Sustainability is an important part of our business and corporate culture. We want to contribute to making investments sustainable, so that the transformation to a climate-friendly economy and society as a whole can succeed. With this investment, we are also proving once again that sustainability is not at the expense of returns.

“By agreeing this impact mandate, we are continuing to systematically develop our existing ESG strategy, which we are also making more measurable. With Schroders Capital, we have a partner that can support us in achieving our goals with its impact investing expertise.”

Maria Teresa Zappia, Head of Sustainability and Impact at Schroders Capital, Chief Impact & Blended Finance Officer, Deputy CEO of BlueOrchard, added, “The design of this mandate goes far beyond sustainability and impact as a regulatory requirement. Together with Barmenia, we have created a portfolio that strives for sustainability and impact across different themes and asset classes, pursuing both social and environmental objectives focused on people and the planet. Measuring and managing positive change are at the heart of our collective efforts to actively incorporate sustainability and impact into this private markets portfolio.”