Swedish Nordea makes its biggest investment shift ever to sustainable assets
Written by Sunniva Kolostyak
Nordea Liv & Pension Sweden has moved SEK 22bn (€2.1bn) from traditional investments to investments with a low-carbon footprint and strict sustainability requirements in its biggest shift in investment strategy ever.
The assets have been moved over the first six months of 2019 and means that its 420 000 members will have more sustainable pension savings and that Nordea’s portfolio has reduced its carbon footprint by approximately 50 per cent.
The pension provider also moved SEK 7bn traditional assets to sustainable ones in 2018, and with this year’s investments, Nordea’s total portfolio has reduced exposure to carbon-intensive sectors, and increased exposure to companies that are considered to be at the forefront of integrating sustainability aspects into their operations.
Commenting on the shift, Nordea Liv & Pension head of sustainability Peter Sandahl said: “As a capital owner, in addition to generating a long-term good return for our pension savers, we have a responsibility to contribute to the transition towards a climate-smart and sustainable future.
“It therefore feels very good that we have moved almost SEK 30bn over the past year. This is an important part of our climate strategy together with continued active ownership and advocacy.”
Nordea’s work is part of a more comprehensive climate strategy where the aim is that all investments at an aggregated level should not contribute to global warming exceeding 1.5 degrees, which is the more ambitious line of the Paris Agreement.
CEO Johan Nystedt said: “We see a clear increase in the interest in sustainable savings and the demands from our customers on sustainable pension products are increasing sharply. We are also convinced that it is positive for the long-term return for our customers to integrate sustainability into our investment strategy.”