Swedish pension provider Skandia has pledged to allocate more than 10 per cent of its life insurance portfolio to climate and environmental investments as part of its updated Climate and Resilience Plan.

At the same time, the pension provider has set itself the goal of reducing its exposure to fossil fuels to below 1 per cent by 2030.

A growing proportion of its portfolio companies will also be subject to science-based climate targets in line with the 1.5-degree target.

Commenting, Skandia head of sustainability, Gabriel Lundström, said: “The wars taking place around the world have highlighted just how vulnerable our energy systems are, which has also made it clear that the issue of the energy transition is not only important from a climate perspective.

“It is just as necessary to strengthen our resilience and long-term independence from the outside world. To implement this transition, major investments will be required, and pension capital can play an important role in this, provided it can be combined with a stable return.”

The new plan builds on Skandia’s previous climate roadmap and covers three strategic areas: Investing in, divesting from and influencing.

Through these tools, capital will be directed towards solutions that contribute to the green transition and reduce dependence on fossil fuels.

“For example, one of Europe’s current weaknesses is its heavy reliance on imported fossil fuels.

"By channelling capital towards areas such as fossil-free energy, increased electrification and energy efficiency, the financial sector can contribute to both reduced emissions and, at the same time, a more independent Europe,” Lundström explained.

Its Climate and Resilience Plan forms part of the company’s efforts to ensure long-term value creation for savers, whilst ensuring that its investments contribute to reduced greenhouse gas emissions, a more stable energy system and a more resilient society.

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