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    Länsförsäkringar Tightens Exclusions Criteria

    Stockholm (NordSIP) – Länsförsäkringar, one of Sweden’s largest insurance groups, announced the decision to tighten the exclusions criteria for oil and gas companies held by its own funds and investment portfolios, resulting in the exclusion of thirteen new companies. Concomitantly, the insurance company also introduced adjustment criteria for energy companies.

    The exclusions will encompass investment in the institutional life, guarantee and insurance portfolios linked to Länsförsäkringar Liv, Länsförsäkringar AB with subsidiaries and Agria, and Länsförsäkringar Fondliv. The decisions were made in the context of  Länsförsäkringar’s climate-smart vision of being climate-positive by 2045.

    “In order to limit global warming in line with the Paris Agreement, the extraction and use of fossil fuels must be reduced. Since 2016, we have gradually tightened the exclusion criteria and introduced increasingly strict limits for coal, oil and gas companies. The criteria are particularly aimed at those companies that have not adopted targets and roadmaps to restructure their operations. These companies are an increasingly risky to manage,” says Sofia Aulin (Pictured), Head of Sustainability at Länsförsäkringar Fondförvaltning.

    The stricter exclusion criteria target companies active in the exploration and extraction of oil and gas assets and lower the exclusion criteria to include companies for whom turnover from these activities represents 5% where before the maximum was 50%.

    As a result of the latest exclusions review, Länsförsäkringar’s exclusion list now includes BP p.l.c., Chevron Corporation, Ecopetrol S.A., Eni S.p.A., Exxon Mobil Corporation, Galp Energia, SGPS, S.A. Oil and Natural Gas Corporation Limited, OMV Aktiengesellschaft, Petrobras SA, LUKOIL, Gazprom, Gazprom Neft, Repsol S.A., Royal Dutch Shell PLC, Brigham Minerals Inc., Delek Group Ltd., Francaise Energie SA, Gulf International Services Q.P.S.C. and Parker Drilling Company.

    ”As investors, we want to be a driving force that encourages companies to switch away from fossil fuels. If excluded companies make climate commitments, act on them, can demonstrate emission reductions and that the companies’ forecasts for climate emissions are in line with the Paris Agreement, we can, together with a financial assessment, consider classifying them as conversion companies and welcome them back,” says Kristofer Dreiman (Pictured) Head of Responsible Investments at Länsförsäkringar Liv.

    Despite the effect of the exclusions, Länsförsäkringar emphasises that engagement can continue to be conducted against selected and now excluded companies in the energy sector.

    “Advocacy work and engagement are important tools for achieving and driving change among companies. By ourselves and together with other investors, we can influence. Within the investor initiative Climate Action 100+, we have been involved since 2018 in advocacy work with companies in various sectors, including engagements activities with the Russian company Gazprom. Even though the company is now on our exclusion list, we continue to engage the company together with other investors,” Dreiman adds.

     

    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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