Swedish pension and insurance company, Länsförsäkringar, has made it easier for it members to identify low carbon funds by adding a green leaf symbol next to them on its funds list.

Funds with the green leaf have low CO2 risk (carbon dioxide). To be awarded the green leaf, funds need to have a low risk when transitioning to a global economy that has low carbon dioxide emissions and limited exposure to fossil fuels.

Länsförsäkringar determined this by using Morningstar's calculation and Sustainalytics’ analysis. The calculations are mainly based on equity funds and are done once a quarter.

It said its sustainability-oriented funds in the offering have clear strategies for selecting companies that intend to contribute to sustainable social development - with the intention of demonstrating positive sustainability effects and avoiding companies and sectors that can be considered irresponsible. Several of the funds have a clear investment focus on companies that operate in, for example, areas such as renewable energy and energy storage.

Speaking to European Pensions about the new symbol, Länsförsäkringar head of responsible investments, Kristofer Dreiman, said: "Sustainability in general and climate in particular are important focus areas for both Länsförsäkringar and our customers. Länsförsäkringar’s board decided on a new 'climate smart' vision last year. We have also surveyed our customer on these topics; 60 per cent think sustainability is important in relation to their savings. That figure is considered to be higher than for the industry in general.

"With regards to our fund offering and the platform itself, we want to make it simpler for our customers to find funds with low climate impact as well as low carbon risk. With the new additions, customers can review which funds have low carbon dioxide emissions and limited exposure to fossil fuels.

"The climate-focussed information that has been added now complements the other sustainability related information and filtering functions we already had. For example, customers can with a single click on the platform view our sustainability-focused fund offering (including both Länsförsäkringar and external funds), but also review sustainability focused investment proposals."

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