The Folksam Group, including KPA Pension, has invested SEK 300m in a bond issued by Jönköping Municipality to help finance new water infrastructure projects.

KPA Pension contributed the largest share of the investment at SEK 132m, followed by Folksam Life (SEK 64m), Folksam Occupational Pension (SEK 50m), Folksam Sak (SEK 38m) and the Folksam Foundation (SEK 16m).

The funding will partly support the Häggebergs Vattenverk project, which includes renewing outdated pipe systems and expanding the city’s capacity to handle heavy rainfall.

The municipality will report annually on indicators such as the length of pipes renovated, water savings achieved and volumes of purified and reused water.

The project aligns with one of six environmental objectives under the EU taxonomy and with the UN Sustainable Development Goals related to water and marine protection.

Jönköping Municipality has also adopted ambitious climate targets, including a 10 per cent annual reduction in emissions, halving emissions by 2030 compared with 2020, and achieving fossil-free operations by 2030 (excluding district heating).

“This collaboration with Jönköping Municipality is another example of how our customers’ occupational pensions can create added value over the long term,” commented Folksam Group business developer, Mark Johnsson.

Folksam and KPA Pension emphasised that the investment was part of a broader agenda to highlight the role of pension capital in enhancing Sweden’s civil preparedness.

In its recent report, Pensionskapital i beredskap, KPA Pension estimated that Sweden faced multi-trillion-krona investment needs to deliver on the green transition, climate adaptation and crisis resilience.

Consequently, pension assets - now approaching SEK 10trn - were described as “uniquely suited” for long-term infrastructure financing, with public-private co-financing seen as essential.

The report also revealed strong public support, with a survey by Verian for KPA Pension finding that six in ten Swedes would be open to their pension savings being invested in projects that enhance civil preparedness, with particular concerns over cyberattacks, food and medicine security, and climate-related risks.

Through KPA Pension, Folksam stated that it aimed to "drive public opinion" on how pension capital can help safeguard critical societal functions, including food supply, cybersecurity, and the adaptation of infrastructure to climate change.

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