Swedish pensions push on climate change and impact investment

Swedish pension funds and other institutional investors have ramped up efforts to use their financial might to fight climate change and improve the world around them.

Alecta and KPA Pension announced they have joined the investor initiative Net-Zero Asset Owner Alliance (AOA), which was launched on Monday in New York in conjunction with the UN Climate Summit.

The members' common goal is investment portfolios that are climate neutral by 2050, with clear milestones along the way.

Magnus Billing, chief executive of Alecta, said the pension fund, said it would use its “ownership vote to influence companies to become more transparent and adjust”.

“We will explore new investment opportunities that combine good returns and positive climate impact and contribute to the development of tools and methods to integrate climate aspects into the investment analysis,” said Billing. “It is our conviction that we thereby contribute to our goals of safe and satisfied customers – and good returns.”

KPA said it had invited other Swedish investors to make the pledge and had been pleased with the level of take up.

Alecta and the Swedish Church are two of the investors and finance companies joining to pioneer impact investment under a new national initiative.

The Swedish National Advisory Board for Impact Investing has brought together institutions from across the Scandinavian country to “promote, stimulate and mobilise private, institutional and non-governmental funding of solutions to societal challenges”.

In a statement on its website, the not-for-profit membership association said: “Our firm belief is that public funding alone will not be sufficient to halt climate change, reduce pollution and minimize exclusion and illness. We need more innovative solutions, delivered by entrepreneurial and financially sustainable organizations funded by capital outside of the public tax system and with new payment models for outcomes.”

The national board is applying for membership to become one of 22 National Advisory Boards around the world connected to the Global Steering Group for Impact Investment.

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