Swedish ICMIF member Folksam has today announced that it has increased its ownership in steel producer SSAB. Its 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.
“Fossil free steel production will be one of the key elements of a successful climate transition, both in Sweden and globally. At the same time, SSAB’s ongoing transformation is important to ensure that industrial jobs stay in Sweden. We have been shareholders in SSAB for many years and are now ready to take a more long-term responsibility for the company’s climate transition efforts,” says Ylva Wessén, CEO of the Folksam Group.
Folksam has more than SEK 500 billion in assets under management. Its long-term climate target is to transition its investment portfolios to net-zero greenhouse gas emissions by 2050, at the latest. To achieve this, Folksam plans to engage with high carbon portfolio companies on their decarbonisation journeys.
“We are convinced that we can make a more substantial contribution by supporting large emitters in their transition efforts, rather than excluding them from our portfolios. Through our increased ownership in SSAB, we have an opportunity to make a real impact in a company that today represents 10 and 7 percent of the emissions in Sweden and Finland”, respectively, says Ylva Wessén
In recent years, Folksam has made several investments aiming to support climate transition, including investments in green bonds, including investing in Northvolt and Volvo Cars. The decision to increase its ownership in SSAB was made this spring and is yet another investment made to further accelerate the climate transition in a way that is also financially beneficial for Folksam’s clients.
Image source: SSAB