In this year’s analysis of pension companies and unit-linked insurance in Sweden, most pension companies retain the same grade as they got last year. While most pension companies have set net zero goals and improved their sustainability work, practical action is still needed through active ownership and proactive initiatives. In the reports “Sustainable pension companies” and “Sustainable unit-linked insurances”, Söderberg & Partners bring light to which companies do this well and which ones don’t perform as well.
The latest analyses of sustainable pension and unit-linked insurance companies in Sweden have been released. Every year, Söderberg & Partners analyze Sweden’s largest actors in pensions and unit-linked insurances to see which companies are best at promoting green investments in their portfolios.
This year, there weren’t a lot of changes in which companies got the green light or not, but it is clear that most pension companies are investing in bigger sustainability teams and improving their risk analyses from a sustainability perspective. Since last year, many companies have also implemented a sustainability day or week for the company to educate co-workers on sustainability issues.
These changes show that sustainability is becoming increasingly important for investors, and as EU regulations on sustainable investments are being implemented we expect this trend to continue.
Pensions: Increased awareness, but still more to do
Despite updating our analysis model for this year, no companies changed their overall grade in this year’s report. However, many pension companies have advanced their positions, expanded their sustainability teams, and set net zero goals in line with the Paris Agreement. However, proactive action is needed to reach the goals in time.
In this report, pension companies were evaluated based on their processes for sustainable investments, active ownership as well as ambitions and value creation.
Unit-linked insurances: Transparency and proactive ownership are the keys to success
Two companies changed their overall grade compared to last year’s report. SEB improved their grade from red to yellow by increasing the amount of funds that performed well in Söderberg & Partners’ sustainability analysis. They also improved their transparency in describing their sustainability processes.
Meanwhile, Futur was demoted from a green to a yellow grade because of their lack of proactive activity towards their fund managers, as well as a lack of collaboration with other actors in the sector.
In this report, companies were evaluated based on the sustainability of selected funds, active ownership, communication and transparency, and supply.
⚠ Companies with a red light in this year’s report: AMF, Nordea Why is this important?
When choosing which company to rely on for your pension, you can use your financial power to support more sustainable asset management. Companies with higher grades in the report have developed processes for sustainability consideration and evaluation and work proactively to make practical changes to the funds or holdings they invest in, with good conditions to make these changes happen.
Companies with these qualities direct funds to benefit the sustainable transition, accelerating climate solutions and influencing companies to take more sustainable actions. Make sure to stay up to date with the performance of your pension and insurance companies in our analyses if you want your money to help reach our climate goals.
If you live in Sweden, you can learn more about which companies are the best at climate action by reading our full reports.
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This is positive news, though, practical actions such as active ownership and proactive measures are still necessary to truly advance sustainability efforts in the pension and insurance sector.
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It is glad to see Companies working Soo tirelessly to set net zero goals
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It's encouraging to see that many companies have set net zero goals aligned with the Paris Agreement and are expanding their sustainability teams.
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The analysis of sustainable pension companies and unit-linked insurances in Sweden sheds light on the progress made in promoting green investments and sustainability practices within the financial sector. While many companies have made strides in expanding sustainability teams and setting net zero goals, there is still room for improvement in terms of proactive action and transparency. It's encouraging to see that sustainability is increasingly prioritized by investors, and the implementation of EU regulations on sustainable investments is expected to further drive this trend. Companies like Länsförsäkringar, Nordea, Skandia, and SPP are setting positive examples with their green initiatives, while others still have work to do in terms of active ownership and collaboration.
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What we require is sustainability being achieved by these pension funds and cutting in carbon emissions
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In-depth analyses like this are super helpful for those who are not as knowledgeable about the finance market, like me. Happy to have my pension savings in SPP!