Sweden’s KPA Pension has recently completed an investment of just over SEK 1.6bn in a green bond from the World Bank (International Bank for Reconstruction and Development, IBRD), which aims to finance sustainable development around the world.

As part of the Folksam Group, KPA Pension is one of the major investors in green bonds. The investment will, among other things, contribute to supporting projects in renewable energy, energy efficiency and biodiversity.

“We at KPA Pension are happy to be able to make this type of investment that provides a secure return to our customers in the municipal and regional sector, but which also contributes to a better and more sustainable world,” KPA Pension CEO, Camilla Larsson, said.

World Bank head of investor relations and sustainable investments, Heike Reichelt, said: “The World Bank's bonds are a way for investors to contribute to their sustainable investment goals when they channel funds to our member countries for a greener and more resilient future.

“We are pleased to once again collaborate with Folksam Group and appreciate their holistic view, which includes not only green, but sustainable investment products in general.”

One example of how a World Bank green bond has been used, is the financing of a geothermal energy project in Indonesia, which will reduce CO2 emissions by 30 million tonnes over the next 30 years.

In addition, in Botswana, a water project is underway with the aim of facilitating and improving the water supply for areas that are regularly affected by drought.

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