Case study

Folksam – Reducing Hazards Caused by Climate Change through Investment (Sweden)

Last update: 21 June 2021

Key facts

Swedish ICMIF member, Folksam, recognizes that fossil free steel production will be one of the key elements of a successful climate transition, both in Sweden and globally.


ICMIF member Afa Försäkring and Alecta (Sweden’s largest private pension fund) have joined forces and invested in improved living conditions in developing countries, thus contributing to the achievement of the United Nation’s Sustainable Development Goals (SDGs) that have not advanced as much as might otherwise have been possible due to Covid-19.

With this motivation, the mutual has increased its ownership in steel producer SSAB. SSAB’s plan is to offer fossil-free steel to the market in 2026 and to eliminate all CO2 emissions by 2045*. Folksam’s holding in SSAB now corresponds to 5.2 percent of the voting rights and 2.1 percent of the share capital. The additional investment was primarily made to take a more active role in supporting the company’s transition to fossil free steel production, while at the same time it is considered to have the potential to generate long-term attractive returns to Folksam’s clients.
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In addition to investments focused on health, the bond focuses on goals linked to financial integration, climate-smart agriculture, access to clean energy at a reasonable cost, and clean water and sanitation.

Mechanisms: Investments
Hazards: Environmental

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