A coalition of state regulators is collaborating with investment management firm Nuveen to develop strategies that coordinate capital from insurance companies and other entities for positive social and environmental impact.
Nuveen – the $1.3 trillion investment manager of TIAA, the Teachers Insurance and Annuity Association of America – is working with California, Connecticut, Iowa, New York and Wisconsin on the project.
The goal is to align the efforts of major insurers, foundations, endowments and family offices to “invest for impact” while overcoming barriers that impede substantial allocations to impact-focused assets, according to a news release from Nuveen.
The initiative is intended to enable investment in a variety of ESG-aligned areas, including affordable housing; companies that enhance resource efficiency, mitigate carbon emissions and expand access to affordable basic services; projects to enhance commercial real estate energy efficiency; and sustainable energy infrastructure.
“The state coalition has been an invaluable partner to Nuveen, underscoring the dedication of the industry to unlocking insurance company capital for positive outcomes while meeting insurers’ need for stable, secure investments,” said Joseph Pursley, Head of Insurance, Americas with Nuveen.
“This collaboration with Nuveen and state regulators is a significant step forward in harnessing the power of insurance capital to drive positive change in areas like affordable housing, sustainable energy, and climate resilience,” said Connecticut Insurance Commissioner and NAIC President Andrew N. Mais. “By aligning capital with impact, we foster an investment landscape that strengthens financial stability and supports a healthier, more sustainable future for our communities and building resilience across the economy.”
“Insurers are keenly attuned to the financial implications of social and environmental change for their business and, just as importantly, the opportunity to invest for beneficial impact that can help counter those changes,” Pursley added. “Yet, impact investments currently represent just a fraction of the $5 trillion-plus of life insurance industry-invested assets, with many insurers holding back because of a perceived lack of competitive returns, the inability to scale their investment and constraints on the kind of assets that insurers can hold.”
Nuveen has a long track record with impact investing. Backed by TISS, it pursues positive social and environmental impact along with competitive financial returns across various asset classes. Nuveen reports that it has placed more than $31.4 billion investments delivering measurable social and environmental benefits. At the close of 2023, the firm had about $320 billion in insurance industry assets under management globally with more than 125 clients.
