Sweden’s largest pension fund Alecta has committed $110m (€95m) to an emerging markets climate strategy managed by responsAbility Investments.
The investment marks Alecta’s third investment with the Swiss impact investment manager, which will support renewable energy and energy efficiency.
The strategy also includes climate adaptation, supporting financial institutions in strengthening resilience to climate risks.
Alecta ended 2025 with SEK1.4trn (€130bn) in assets under management and has said sustainability is integrated into its long-term investment process.
Ann-Mari Carlsson, portfolio manager at Alecta, said the fund’s emphasis on clearly allocating capital and measuring impact aligns with Alecta’s long-term approach as a pension investor.
The commitment builds on the Swedish occupational pension fund’s track record in backing climate finance in developing economies. In 2024, the Swedish fund, alongside APK Pensionskasse, invested in the impact-oriented emerging market bond fund from Amundi and the International Finance Corporation (IFC).
The commitment comes as Alecta continues to move beyond the investment crisis that engulfed the fund in 2023. Earlier this year, the pension fund retained its mandate as the default provider in Sweden’s ITP occupational pension scheme after the ITP Committee decided not to terminate the contract. The decision came despite the Swedish Financial Supervisory Authority having previously fined Alecta over risk control failings linked to its investment in Heimstaden Bostad.
responsAbility said the investment highlights the role of impact investing in mobilising private sector capital towards climate solutions in global emerging markets within an institutional investment framework.
Stephanie Bilo, chief client and investment solutions officer at responsAbility, said the investment from Alecta reinforces the importance of the Nordic market and the momentum the firm is seeing with institutional investors in the region.
“Building on this, and together with the institutional backing of M&G’s platform, we are well-positioned to offer scalable climate investment solutions to institutional investors globally,” said Bilo.
Since 2014, responsAbility has invested around $1.8bn (€1.5bn) across 47 countries in projects expected to deliver lifetime emissions savings of 72.2 million tonnes of CO2.
The firm uses an impact measurement and reporting framework, including proprietary carbon reporting through the CO2rA tool, with more than 114,000 renewable energy and energy efficiency projects reported to date.
