Swedish ICMIF member Folksam has invested approximately SEK 800 million in social bonds issued by Motability Operations, an organisation in the UK that enables people with disabilities to lease a car, scooter or wheelchair with the help of their government mobility allowance – and therefore gain better access to work, healthcare, education and participation in society.

The Motability Scheme is currently used by around 890,000 people with disabilities across the UK. The arrangement includes not only vehicles, but also insurance, maintenance, roadside assistance and necessary adaptations of vehicles.

“As a long-term investor, we want to contribute to solutions that make a tangible difference and simplify people’s everyday lives, while generating returns for our customers. Motability is a good example of how the capital market can be used to scale up social benefits in a structured and sustainable way,” said Mark Johnsson, Business Developer at the Folksam Group.

The investment is part of the Folksam Group’s work on responsible asset management, where social bonds are used to finance solutions with measurable societal benefits. Motability Operations is owned by a consortium of four UK banks (Barclays, Lloyds, HSBC and RBS, all four of which have waived their right to any dividends) and finances their entire operations through capital market loans and social bonds. It has a clear social impact framework and all the company’s profits are reinvested in the programme for the benefit of customers.

In Sweden, there are several forms of support for people with disabilities, such as car allowance, transport services and assistive devices. At the same time, there is a lack of a coherent model where mobility support can be directly translated into a long-term and complete mobility offer, corresponding to the British system.

“This is basically not about vehicles, but about the opportunity to live an independent life. When people have access to functional mobility, their opportunities for work, study and participation in society increase,” concluded Johnsson.

The Folksam Group’s investment complements the Group’s broader commitment to traffic research, injury prevention and work in Para sport, including the Paralympics, and is another example of how capital can be used to support social sustainability in practice.