Sweden’s Folksam and its municipal pension fund subsidiary KPA Pension have announced a new set of climate targets, aiming to have halved greenhouse gas emissions on investments by 50% by 2030 from various base years – building on the 29% reductions already achieved by this year.
The new goals to help combat climate change are based on the United Nations’-convened Net Zero Asset Owner Alliance (NZAOA) framework for climate interim targets.
Pensions and insurance group Folksam and KPA Pension said they had already met the previous climate targets as of 1 January 2025, by, for example, lowering the CO2 footprint for equities, corporate bonds and real estate by 29% from 2019.
The new targets – which are a step along the way to achieving net zero emissions in asset portfolios by 2050 – are to reduce the CO2 footprint for equities, corporate bonds, alternative investments and real estate by 50% by 2030, from base years of 2019 for real estate, equities and alternatives, and 2022 for corporate bonds.
Emilie Westholm, Folksam’s head of responsible ownership, said: “We have worked to develop new interim targets for 2030 and have taken the next step with a broader perspective on the issue of climate transition by including Just Transition, and also having clearer expectations for the incentive programmes of company management.”
“We see great benefits in setting scientifically based climate targets, but do not want the social consequences of the transition to be forgotten,” said Westholm, adding: “In some cases it is a difficult balancing act.”
The NZAOA protocol asks members to consider ‘just transition’ impacts of their decarbonisation targets, and has encouraged investors to focus on emerging markets, which are typically most vulnerable to climate change but have fewer resources to move away from fossil fuel dependence.
Folksam said it also achieved 2025 engagement targets of influencing its holdings with the highest emissions towards a gradual improvement of climate targets, which encompassed 87 companies.
The group said it had exerted its influence via dialogue with the companies, and in some cases by voting at annual general meetings.
Read the digital edition of IPE’s latest magazine

No comments yet