Swedish pensions and insurance group Folksam has invested SEK2.8bn (€269m) in the first sustainable development bond targeting global food loss and waste.

The bond was issued by the International Bank for Reconstruction and Development (IBRD), part of the World Bank Group.

Michael Kjeller, head of asset management and sustainability at Folksam, said the investment was focused on the UN Sustainable Development Goal 12, “responsible consumption and production”.

He added that over the past two years, Folksam had invested more than SEK10bn in bonds issued by the World Bank.

The bank said the most recent bond had been issued to raise awareness of the importance of combating food loss and waste.

In a disclaimer, it said the proceeds of the issuance were not committed or earmarked for any particular projects.

However, as an example of related action taken by the group, the World Bank cited the IBRD’s financing of grain storage in Mexico to reduce post-harvest losses while increasing the competitiveness of small grain producers.

World Bank vice president for sustainable development Laura Truck said: “Halving global food waste per capita and reducing food loss along the entire supply chain by 2030 are essential to manage scarce resources and improve nutrition, as well as tackle climate change.”

Folksam said it put heavy emphasis on sustainable investment, and was also among three Swedish pension funds to have invested in a five-year “blue bond” issued by the Nordic Investment Bank (NIB) in January. The other pension fund investors were AMF and AP3.