Norwegian KLP launches ecolabelled fund

Occupational pension provider KLP has launched a fund with the official Nordic Swan Ecolabel, which will consist of at least 90 per cent environmental, social and governance (ESG) screened companies.

The fund is the first in Norway to carry the Swan label, a well-established brand in the Nordics, established by the Nordic Council of Ministers, which demonstrates that a product is a good environmental choice.

KLP Advisor for responsible investments Marte Siri Storaker said the established label and its criteria is well-suited to KLP's values and is a good alternative for those who want to invest in a more socially responsible manner.

“KLP has a long tradition of providing good index funds with low costs. This will continue that tradition with a globally sustainable fund which follows the index closely without seeing the expected return and risk changed significantly.”

Funds with the Swan label must meet criteria around inclusion and exclusion of companies, as well as requirements around openness and ownership. This includes avoiding investments in fossil energy, weapons, tobacco and companies that violate rules on human rights, environmental regulations and corruption.

Moreover, 90 per cent of the fund’s direct portfolio must have undergone an ESG analysis, while 50 per cent of the portfolio must have received a good rating. The fund must also be open and transparent about which companies it invests in, how it works with sustainability and how it exercises active ownership.

“It is all about the fact that we want to give our customers an opportunity to save in a fund that prioritises the best companies,” Storaker said. “We experience that many customers want their savings to contribute to something more than returns.”

The Swan label is usually valid for three years, after which the criteria are revised and the company must reapply for a licence. In this way, the label ensures that products better suited to the environment are constantly being developed.

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