Twenty-one per cent of Swedish pension capital meets the European Union’s (EU) criteria for sustainable investment, according to a new report by Skandia.

Its report, Riv investeringshindren - så kan 567 hållbara miljarder blir fler (Removing barriers to investment – we can make SEK 567bn grow) found that of the SEK 2,700bn pension capital in traditional pension insurance, SEK 567bn (21 per cent) is sustainable. Skandia’s report looks at how this figure can be increased.

“Swedish pension capital can play a unique role in helping to finance the transition to a sustainable society. But for these investments to increase, obstacles must be removed. It is time for a debate in Sweden about how pension capital can really contribute to a more sustainable future," Skandia head of asset management, Lars-Göran Orrevall, said.

The report found a strong willingness among pension managers to invest in sustainable solutions to societal challenges, while there are large differences between the various players in the proportion of investments classified as sustainable by the players themselves, ranging from 4 per cent to 32 per cent. However, the lack of interesting investment opportunities is one of the biggest obstacles.

“The transition will require huge investments, not least in infrastructure. Politicians, companies and pension capital must find a common way forward to realise these necessary investments," Orrevall stated.

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