Stockholm (NordSIP) – Norwegian life insurance company KLP (Kommunal Landspensjonskasse) has launched its first swan-labelled investment fund, the KLP AksjeGlobal Mer Samfunnsansvar [More Social Responsibility] to invest pensions and savings in companies with serious sustainability profiles.
The KLP AMS is the first index-linked fund to receive the Nordic Swan Ecolabel, and will be invested in a total of 750 companies. The Nordic swan label is the official sustainability ecolabel for the Nordic countries, now covering around 70 product groups and including investment funds where compliance must be verified with ecolabelling criteria such as environmental, quality and health standards.
KLP, the largest life insurance company in Norway with NOK 641 billion in AUM, manages the pensions of 900,000 municipal employees. It conducts semi-annual reviews of its investment portfolio according to its Responsible Investment guidelines that routinely results in exclusions of major global companies from its investment universe, including three major oil companies recently.
“We are very pleased to launch Norway’s first swan-labelled mutual fund. The fund will invest in companies with high Corporate and Social Responsibility criteria and which have even stricter exclusion criteria than other KLP funds on fossil fuel energy and weapons. In addition, the fund has a management fee of just 0.32 per cent,” said KLP CEO Sverre Thornes.
“The fund is already in demand. It will best suit customers wanting a broad globally sustainable fund that closely follows the index without the fund’s expected return or risk changing significantly,” Thornes added.
Swan-labelled investment funds like KLP’s new fund use capital and ownership to influence companies the funds invests in and to develop them in more sustainable directions, through exclusion or inclusion of businesses on the basis of their sustainability, transparency on investment processes and the active impact of companies in the portfolio.
“Our goal is to reduce the overall environmental impact from production and consumption, and there is enormous potential in motivating banks, pension funds and investment funds for more sustainable investments,” said Anne-Grethe Henriksen, Nordic Ecolabelling Marketing and Communications Manager. “Questions are increasingly being raised about both pensions and savings, so it is an important milestone for us that KLP has now launched a sustainable fund that has been awarded the Swan label.”
Thus far there are 19 Swan labelled-funds totalling €5.5 billion. KLP AksjeGlobal Mer Samfunnsansvar is the first all-Norwegian fund, joining four other Swedish swan-labelled investment funds operating in the country (Didner & Gerge Global, Handelsbanken Sustainable Energy, SEB Sustainability Fund Sweden and the Tundra Sustainable Frontier Fund). Denmark recently launched four swan-labelled funds, with the rest being in Sweden.
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