Impact investing

On 24 December 2021, the General Assembly of the United Nations adopted a resolution*, requesting the Fund to explore impact investing across all the Fund’s asset classes.

In our impact investing approach, we aim to achieve positive, measurable social and environmental outcomes alongside competitive financial returns, as defined by the Global Impact Investing Network (GIIN).

We outline our Impact Investing goals and approach in our Impact Investing Policy.

The Fund’s Impact approach is consistent with our fiduciary duty

Investments must, at the time of initial review, meet the criteria of safety, profitability, liquidity and convertibility.

The Fund’s Impact approach is outcome-focused

Impact investments are rooted in the underlying priorities of the United Nations, member organisations and participants.

Impact themes

We have identified four key and investable themes to guide our impact investments

Climate & Energy

Natural Resources

Fundamental needs & Infrastructure

Community empowerment & development

Impact investing in Fixed Income

Investing for positive impact by investing in Green, Social, Sustainable, and Sustainability-linked (GSSS) bonds

In addition to conventional bonds, we invest in labelled bonds. Labelled are issued by companies, governments, or other entities to finance projects or initiatives that have a positive social or environmental impact, such as renewable energy projects, affordable housing initiatives, or sustainable marine preservation programmes. These instruments are designed to support positive environmental and social outcomes and are usually geared to be aligned to support the advancement of the Sustainable Development Goals (SDGs).

By investing in these bonds, OIM can help support sustainable and responsible initiatives to achieve its goal of promoting long-term, sustainable returns for its beneficiaries.

Share of Sustainable Bonds as part of Total Fixed Income allocation

*Figure as at 31 December 2022

We are committed to the long-term goal of increasing our allocation to green, social, sustainable and sustainability-linked bonds in a manner consistent with the investment principles of the UNJSPF.

The SDGs offer a comprehensive framework to help identify social and environmental issues, they are aligned with our values as a UN entity and are helpful in communicating material real-world impact.

Impact investing through Multilateral Development Banks

Multilateral Development Banks (MDBs) are supranational financial institutions created by multiple sovereign governments. MDBs provide financing and technical assistance for infrastructure, economic and social development projects mainly to lower-middle- and middle-income developing countries, contributing to the economic development of these regions.

Given their development mandate and yield profile, MDB-issued bonds are appealing investments for the UNJSPF. MDBs and issuers are usually very transparent on where the proceeds are used and disclose publicly every project’s progress, outcome, and ultimate impact.

Across its total Fixed Income portfolio, the UNJSPF invests over $288 Million* in MDB bonds, with the larger issues being the Asian Development Bank (ADB), the International Bank for Reconstruction and Development (IBRD) and the European Investment Bank (EIB).

*Figure as at 31 December 2022

In addition to conventional bonds, we invest in labelled bonds. Labelled are issued by companies, governments, or other entities to finance projects or initiatives that have a positive social or environmental impact, such as renewable energy projects, affordable housing initiatives, or sustainable marine preservation programmes. These instruments are designed to support positive environmental and social outcomes and are usually geared to be aligned to support the advancement of the Sustainable Development Goals (SDGs).

By investing in these bonds, OIM can help support sustainable and responsible initiatives to achieve its goal of promoting long-term, sustainable returns for its beneficiaries.

Below is a list of MDBs we have exposure to, their main activities, and the regions they serve.

The Fund’s Public Equity alignment with the SDGs

The Fund mapped its equity investments to the SDGs to understand portfolio alignment and its contribution to key sustainable development goals and themes.

MSCI data as at 31st December 2022

The SDG portfolio alignment approach measures the net impact of portfolio companies’ products and services on achieving targets associated with each of the 17 SDGs. Net impact implies that some of a company’s products and services may be well aligned with achieving the SDG, while other products and services may have an adverse impact and be misaligned with achieving the SDG.

*76/246. Special subjects relating to the proposed programme budget for 2022 XIII Administrative expenses of the United Nations Joint Staff Pension Fund

“21. Recalls the four main criteria for investment utilized by the Fund, and requests the Secretary-General to explore, in consultation with the Investments Committee and taking into account the observations and suggestions by the Pension Board, impact investing for part of the portfolio, including in developing and emerging markets, such as Africa, bearing in mind the real rate of return target, and to report thereon to the General Assembly in his next report”