By working with the Swedish Environmental Research Institute (“IVL”) and investing in two Swedish property companies, the latest project within the Söderberg & Partners Asset Managements’ (“S&P AM”) fund strategy Aktiv Påverkan (“Active Engagement”) set the foundation for more ambitious climate action and more accurate climate reporting. The key focus was to provide new tools and incentives for reducing emissions in the construction and civil engineering sectors.
The investors voted for the second theme for S&P AMs’ fund strategy Active Engagement to be “Reduced carbon dioxide emissions”. The project, running from 2020 to 2022, has focused on reducing carbon emissions in the construction and civil engineering sector by investing in two Swedish property companies that own, develop and manage properties – Stendörren Fastigheter AB and Diös Fastigheter AB.
IVL was the collaborative partner for this project, and from the start, it was clear that both companies were receptive to the help and had a lot of potential for improvement.
Accurate climate reporting leads to concrete action plans
One of the main takeaways for the companies during the project was methods for more accurate climate calculations and reporting. IVL gave both Stendörren and Diös more thorough tools for carbon emissions measurement that allow them to report emissions according to the GHG Protocol, including the more elusive Scope 3 emissions (emissions caused by other actors connected to the company’s operations, like suppliers and transport providers). These calculations provide useful data for setting up more ambitious, science-based climate targets, and action plans to reach them. Diös showed their ambition by setting a target of halving their emissions by 2030 and reaching net zero emissions by 2045. The new tools for climate change adaptation also helped prepare the companies for stricter environmental legislation, something that is crucial for all companies in the sector. According to Stendörren, they were well prepared for new regulations that mandated them to hand in a climate declaration to Boverket – the Swedish National Board of Housing, Building and Planning – at the start of 2022. The process was much faster than it would have been otherwise.
Engaged investors inspire action
It was also clear that the project inspired more ambitious climate action overall in both companies. When companies are encouraged, not only from the side of customers, or in this case tenants, but also from investors and financial institutions, it gives executives incentives to adopt more ambitious action plans and be more active in their climate agenda. This effect was amplified when both companies were given a better picture of the climate impact they really have, making the urgency to act on the climate crisis clear.
This is only one of the projects S&P AM is conducting within the scope of the Active Engagement fund strategy. The next focus for this strategy is improving the circularity of the companies S&P AM invested in within the third theme.
If you want to read the full report for the project on reducing emissions in the construction and civil engineering sector, you can find it in Swedish on Söderberg & Partners website:
https://www.soderbergpartners.se/insikt/artiklar/hallbarhet/vad-blev-resultatet-av-aktiv-paverkans-andra-paverkningstema/
This is a marketing communication, please refer to the prospectus of Söderberg & Partners Funds and to the KID of the relevant product before making any final investment decisions. The prospectus and information on investor rights are available in English, while the KID is available in both English and Swedish. All documents can be found on the www.soderbergpartners.lu/documents.
Marketing arrangements made for the products in Luxembourg and Sweden may be terminated in the future.
