Sweden’s Kåpan ups green bond weighting, expands fossils strategy
Swedish government employees’ pension fund Kåpan Pensioner announced a series of environmental, social and governance (ESG) initiatives it has taken so far this year to up its game in sustainable investment, and said it plans to extend the scope of its fossil-fuel strategy.
The SEK100bn (€9.8bn) fund also said it was increasing its mandate for green bonds, with its holdings of the environmental debt having grown in 2020, and had taken action to cut sustainability risk in its global fixed income portfolio.
Kåpan said in a statement: “We have taken further steps in our sustainability work during 2020, both at an overall level and within most of our asset classes.”
Progress this year included signing the UN-supported Principles for Responsible Investment (UNPRI), the pension fund said.
It said green bonds now accounted for 6% of its fixed income portfolio, which compares to the 4% allocation the pension fund declared this time last year.
“Next year, we will increase the rate of investment in green bonds,” Kåpan said. In global fixed income management, the fund said it would review its holdings in government securities in emerging and frontier markets in order to reduce its sustainability risks.
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