KPA Pension has called for more people-focused climate investments, as it warned that Sweden’s carers, welfare staff and elderly citizens will be among the first to suffer as heatwaves intensify.

The pension provider's Heat report: How heat waves affect our municipalities, highlighted how heatwaves now pose a greater health risk in Sweden than floods or forest fires. These risks particularly affect elderly people and healthcare workers — many of whom are KPA’s customers.

Data from the Public Health Agency of Sweden showed that the summer of 2018 resulted in around 700 heat-related deaths. Meanwhile, the 2007 Climate and Vulnerability Inquiry estimated that by 2100, the economic and social costs of heat-related deaths could reach SEK 660bn.

Given this, KPA Pension, which is part of the Folksam Group, is eager to contribute to change in this area.

"When the temperature rises, it is those who take care of others who first feel the consequences. Our customers, employees in healthcare, schools and social care, will probably have to work more days each year in environments with limited opportunities for cooling," Folksam Group business developer, Mark Johnsson said.

More broadly, KPA Pension believes long-term pension capital is uniquely positioned to fund protective measures for retirees and welfare services, as it aligns with the long-term nature of climate challenges.

Unlike regular stock and bond funds that are traded daily, allowing money to move quickly, pension funds do not need the same level of liquidity, the report noted.

The report also said that pension capital is deeply rooted in Sweden, as it is built from workers’ contributions and intended to pay for pensions within the country, meaning it generally remains domestic and is less vulnerable to currency fluctuations.

Capital could be used to design cooler buildings with green roofs/walls and natural ventilation, shading, and smarter city planning with trees and green infrastructure, the report noted.

Additionally, the fund said capital could be used to upgrade electricity grids so cooling systems can work during heat waves and provide better education and information to reduce health risks.

As a pension manager, KPA Pension acknowledged both its responsibility to pay pensions and its broader societal role in building a sustainable future.

This, the fund argued, gives it not only the opportunity but also the obligation to invest in projects that mitigate climate risks, particularly those affecting socially critical sectors.

Folksam Group business developer, Mark Johnsson, added that if more people are affected by heat stress, this could increase sick leave, which impacts both the economy and society at large.

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