During the first quarter of 2020, Swedish ICMIF member Länsförsäkringar increased its investments in green, social and other sustainable bonds by SEK 3 billion (USD 310 million). Currently, more than 10% of the managed capital in Länsförsäkringar’s portfolio is now invested in sustainability-oriented bonds.
“The share of investments in green, social and other sustainable bonds seems, in our own comparison, to be the highest in the industry among Swedish trustees right now, in relation to the total invested capital” says Kristofer Dreiman, Head of Responsible Investments.
“Our goal is to increase the proportion of climate-smart and sustainable investments and to be able to show the effects of these investments. Therefore, we now report on how our holdings in sustainable bonds contribute to the UN's Sustainable Development Goals (SDGs). The largest contribution has been made to Goal 13 ‘Take urgent action to combat climate change and its impacts’; followed by Goal 11 ‘Make cities inclusive, safe, resilient and sustainable’; and Objective 7 ‘Ensure access to affordable, reliable, sustainable and modern energy’", says Kristofer Dreiman
Länsförsäkringar's pension and insurance customers now have in common in the portfolios over 80 companies (issuers) with green, social or other sustainable bonds. A dozen issues were added to the portfolios during the quarter, including a social bond issued by the International Finance Corporation (IFC), part of the World Bank, to support those affected by Covid-19. Länsförsäkringar invested SEK 300 million in this social bond in March.
In April, Länsförsäkringar invested a further SEK 900 million in social bonds. In its second investment, it invested SEK 380 million (USD 37 million) in a bond issued by the European Investment Bank (EIB), intended to support the European healthcare system. This was followed by a third round of investment involving SEK 240 million (USD 25 million) invested in a bond issued by the Nordic Investment Bank, intended to finance projects with clear social goals, and SEK 300 million (USD 30 million) in a social bond issued by the African Development Bank, to help African countries and companies fight Covid-19
So far in 2020, Länsförsäkringar has invested SEK 1.2 billion (USD 120 million) in social bonds on behalf of customers, financing social projects in the Nordic countries, Europe, Africa and in several emerging countries.
Pictured: The distribution between investments in green, social and other sustainable bonds, and its contribution to selected SDGs.