Swedish ICMIF member Folksam has adopted new climate targets to reach net-zero emissions in its asset portfolios by 2050. One of the new targets is to reduce the CO2 footprint of equities, corporate bonds, alternative investments and real estate by 2030.

Folksam said it has already fulfilled its previous climate sub-goals as of 1 January 2025. For example, the CO2 footprint for equities, corporate bonds and real estate decreased by 29% from 2019.

Folksam Group’s new climate sub-target for 2030 is an important step on the way to achieving the Group’s net zero target by 2050. The new interim targets are in line with the Intergovernmental Panel on Climate Change (IPCC)’s 1.5-degree scenario and raise the level of ambition significantly by being even more concrete and measurable than before.

“We have worked to develop new interim targets for 2030 and 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 company management’s incentive programs. We see great advantages in setting science-based climate goals, but do not want the social consequences of the transition to be forgotten. In some cases, it is a difficult balancing act,” says Emilie Westholm, Head of Responsible Ownership.

The new sub-goals cover three main areas:

• advocacy work with companies in which Folksam has ownership,
• capital allocation strategies – ie work to reduce emissions in the equity portfolio
• overall work to disseminate and increase knowledge of climate solutions.

Folksam follows the global investor alliance UN-convened Net-Zero Asset Owner Alliance (NZAOA) framework for climate targets and indeed was one of the initiators of the Alliance, which was founded at the UN Climate Summit in New York in 2019.

All members of the Alliance have committed to having net-zero greenhouse gas emissions from their investment portfolios by 2050. The Alliance’s climate work is yielding results says Folksam and has so far reduced its financed carbon footprint by over 6% per year since 2019, in line with the Paris Agreement’s 1.5 degrees.

Of the Net Zero Alliance’s total of 87 members, who manage a total holding of approximately SEK 100,000 billion – 79 have set their own goals linked to the Alliance’s new interim goals for 2030.