Skandia Invests in Biodiversity

    Stockholm (NordSIP) – On April 29th, the City of Gothenburg issued SEK1.2 billion in a four-year conventional (non green) bond the proceeds of which are expected to support projects that pursue increased biodiversity and the protection of valuable natural areas and endangered species.

    The bond was a private placement, so the details of the transaction are limited. Swedbank arranged the transaction. Skandia, one of the largest pension providers in Scandinavia announced it was responsible for funding half of Gothenburg’s bond. The SEK600 million investment supports the UN’s global development goal number 15 – ecosystems and biodiversity. Stockholm-based Skandia manages approximately SEK750 billion worth of pension assets for more than 1.7 million customers.

    Since the first quarter of 2021, the City of Gothenburg has a new environmental and climate program until 2030 focusing on biodiversity and ecosystem services. Ecosystem services focus on natural solutions to improve air and water quality or counteract floods and forest fires. The goal for Gothenburg is to have sufficient areas of habitats by 2030 to preserve the species that exist in the municipality and provide conditions for developing ecosystem services. The funds from this transaction are expected to support such initiatives.

    “With the new investment, Skandia has invested a total of more than SEK25 billion in bonds and green bonds that aim to accelerate the transition to a sustainable society in accordance with the UN’s Sustainable Development Goals (SDGs),” says Olof Klockhoff, portfolio manager at Skandia.

    “As a pension company, this was a good opportunity to be able to contribute to investments in the environment and biodiversity. Through the investment, we can support the City of Gothenburg’s work, which has clear goals in the near future. The investment is a good example of how we, as pension managers, can contribute to the municipalities’ work with sustainable development,” Olof Klockhoff adds.

    Image by Pasi Mämmelä from Pixabay

    Filipe Albuquerque
    Filipe Albuquerque
    Filipe is an economist with 8 years of experience in macroeconomic and financial analysis for the Economist Intelligence Unit, the UN World Institute for Development Economic Research, the Stockholm School of Economics and the School of Oriental and African Studies. Filipe holds a MSc in European Political Economy from the LSE and a MSc in Economics from the University of London, where he currently is a PhD candidate.

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