Sweden's Skandia has invested SEK 1.5bn in P Capital Partners Transition Partner Fund, a new credit fund with a focus on sustainability.

The fund focuses on financing carbon-neutral companies, companies with a circular business model, companies that need to change their operations in a sustainable direction and have credible plans for the transition.

Its focus is change and restructuring and it aims to provide financing to companies that contribute to the goal of reducing carbon dioxide emissions by 50 percent within the next decade, as well as to reach net-zero emissions by 2050.

Further goals of the fund include reducing the use of natural resources and that the companies that are financed adhere to the European Union’s goals for biodiversity.

Skandia chief investment officer, Lars-Göran Orrevall, said: “The investment is another piece of the puzzle in our climate roadmap and conversion to sustainable investments in all asset classes.

"By 2025, we must have reduced our fossil holdings by 75 percent and doubled our green investments. This is a concrete benefit in the transition of the global economy that can also be followed up.”

Skandia portfolio manager, Cecilia Sköld, commented: “The fund's strategy is clear and aims to finance or refinance companies with sustainable business models in three well-defined sustainability areas, which includes clear principles for following up and setting requirements for borrowers.

“For us, it is crucial when we invest that it is clear that the investment focus is in line with our climate roadmap.”

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