Pedro Guazo, Representative of the Secretary-General for the investment of the UNJSPF assets, provided an overview of UNJSPF’s mandate to maximize portfolio returns while integrating ESG (environmental, social and governance) factors into its investment strategy at a Climate Week NYC conference. Mr. Guazo also highlighted UNJSPF’s commitment to net-zero by 2050 and how the Fund is leading by example, having already reduced the portfolio’s carbon footprint by over 40%. 

The 2024 Sustainable Investment Forum North America, organized in partnership with the United Nations Environment Programme Finance Initiative  (UNEP-FI), was the Forum’s ninth edition. It convened leaders and experts from across the sustainable finance ecosystem.  

When asked how the UNJSPF balances its fiduciary duty with the United Nations’ values and objectives, Mr. Guazo emphasized that the two are not mutually exclusive.  

“Our fiduciary duty is to achieve risk-adjusted returns, while recognizing the opportunities that we might have investing thematically in renewable sources of energy or other sources to help us reach the Sustainable Development Goals,” he said.  

“We don't see it as a separate thing, we see it as part of our mandate. It’s in our DNA to be responsible.”  

The performance of the UNJSPF customized benchmark, which reflects the exclusions and positive screening of the Fund’s responsible investment strategy, has outperformed the plain vanilla benchmark by 60 basis points on an annualized basis, Mr. Guazo said.  

“For those that think that investing responsibly is leaving money on the table and that there's a tradeoff, that’s not true,” he added.  

Discussions centered on what investors need from policymakers to achieve net-zero and the urgency for collaboration across regions to turn net-zero ambitions into reality. The panel also called for investors and companies to recognize that climate risk is financial risk, and to take seriously the importance of setting targets and establishing credible transition plans.  

“As an investor, the most important thing is that authorities and policymakers let us do our job—letting us take all the relevant factors into account—while investing.” Mr. Guazo concluded.  

To learn more about UNJSPF’s responsible investment strategy, please visit our website.