Nuveen, the investment manager of TIAA, is collaborating with a coalition of state regulators in the US to develop strategies designed to pair capital from insurance companies and other sources for positive social and environmental impact.
The state regulators participating in this initiative include California, Connecticut, Iowa, New York and Wisconsin.
Nuveen, in collaboration with its partners, aims to develop strategies aimed at fostering alignment between insurers, foundations, endowments, and family offices toward impact investing.
Moreover, this initiative addresses critical barriers that have historically prevented significant allocations to assets focused on creating a positive impact, the frim states.
This initiative will enable investment in affordable housing; companies that are increasing resource efficiency, mitigating carbon emissions and expanding access to affordable basic services; projects to enhance commercial real estate energy efficiency, and sustainable energy infrastructure.
Joseph Pursley, Head of Insurance, Americas, said: “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.”
Connecticut Insurance Commissioner and NAIC President Andrew N. Mais commented: “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.
“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.”
Pursley added: “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.
“Yet, impact investments currently represent just a fraction of the $5+ trillion 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.”
