In 2020, we launched Estonia’s first green pension funds — LHV Pension Fund Green and LHV Pension Fund Green Plus, for promoting environmental sustainability.
In 2018 all over the world 450 new sustainability driven funds were established, in 2019 this number of funds alreadey exceeded 500 and in 2020 more than 700 funds were established. Additionally, a considerable amount of funds have revised their investing principles following the sustainabilty mindset. When in 2018 this kind of funds managed a volume of $0.7 trillion, a year later this sum had risen to $1.0 trillion and two years later already $1.6 trillion. 2020 will go down in history as the year when the world's three largest economies - the United States, China and the European Union - pledged to reduce their carbon emissions to climate-neutral levels by 2050-2060. Green values in investment are not a temporary, but a strong and very fast-growing trend.
Green values in investment activities are not a temporary phenomenon but rather a strong and fast-growing trend.
We believe that, like elsewhere in Europe, Estonia has enough green-minded people who want their retirement savings to follow sustainable principles connected to a green worldview.
LHV’s green pension funds are meant for anyone, who cares about green mindset even a little bit and who believes that investing money must be productive in the long run, but certainly also environmentally friendly and sustainable.
The funds always invest 75% to 100% into equity. At least half of the portfolio is invested in investment funds that abide by sustainability principles or have environmental themes. All individual investments are similarly environment-based - they are related to renewable energy, energy performance, water technology, reducing pollution, waste management, ecological support activities, responsible forestry, and agriculture. According to the prospectus, the management fee is 0.49% per year. The green funds are managed by Joel Kukemelk.
Also see LHV asset management’s principles of responsible investing and voting policy.