Länsförsäkringar Prolongs Sustainable Bond Market Bonanza

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    Stockholm (NordSIP) – According to the latest UN climate report, the transformation necessary to achieve the Paris Agreement’s climate goals needs to accelerate. At the same time, the International Energy Agency (IEA) argues that investments in renewable energy need to triple by 2030 to achieve the 2015 Paris Agreement goals.

    To support these efforts, Swedish insurance company Länsförsäkringar has maintained a high level of investment in sustainability-oriented bonds. The asset owner reported that its investments in green, social and thematic (“sustainability-oriented”) bonds, will reach more than SEK20 billion in the third quarter of 2021, a tenfold increase from where it stood at the beginning of 2018. Sustainability-oriented bonds whose funds are earmarked for projects with positive climate effects and the expansion of renewable energy production, now represent over 16% of the assets under management in the institutional life and insurance portfolios.

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    “In a few years, we have managed to increase our investments in sustainability-oriented bonds by tenfold thanks to ambitious annual targets, focusing on direct investments and applying an integrated ESG and financial analysis within Länsförsäkringar Liv’s asset management. The investments are intended to contribute to both customer value and sustainable value creation,” says Kristofer Dreiman, Head of Responsible Investments, Länsförsäkringar Liv and continues.

    “Transparency in our work with sustainability-oriented bonds has been another success factor,” Dreiman adds, pointing to the regularly updated information about the issuers of sustainability-oriented bonds that Länsförsäkringar has invested in.

    Länsförsäkringar’s investments in sustainability-oriented bonds are made from the institutional life and insurance portfolios linked to Länsförsäkringar Liv, Länsförsäkringar AB, Agria and Fondliv.

    Image courtesy of NordSIP (Binniam Halid)
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