Swedish SPP Funds make all funds fossil-free

SPP Funds chooses to make all funds, with total assets of EUR 23 billion, fossil-free. - Reducing global warming and meeting the 1.5-degree target requires a vigorous transition to a fossil-free world. The climate issue is a top priority, and the finance industry plays a crucial role in the transition to achieve the goals of the Paris Agreement. As an investor, we must contribute in the way we can. Right now, we are in a completely unsustainable situation, where the gap between the global plans to finance fossil fuels and the climate plans agreed by the world's leaders in Paris in 2015 is only increasing, says Åsa Wallenberg, CEO of SPP Funds. SPP Fonder has gradually reduced its carbon dioxide exposure in all equity and fixed income investments for several years. - We must realize that not all companies will be part of the future. We will, therefore, back companies that can change their operations and have the opportunity to be part of a profitable, sustainable economy, allocate capital to them, and challenge industries that are not compatible with the global climate ambitions, ”says Åsa Wallenberg. SPP Fonder works with active ownership in the sustainability work. But patience is required as change takes time. "In Sweden, we have a customer group that doesn't have the patience. Many of our customers also have well-developed climate plans and enrolled in their investment mandates. We want to provide climate-smart future products to them." According to Åsa Wallenberg, there are also political and regulatory reasons not to invest in companies with fossil fuels. - Carbon dioxide emissions are likely to be taxed more and more in the future, a risk the finance industry generally may not be fully priced. The European Investment Bank's recent decision to stop funding fossil fuels also indicates that the step we are now taking is right, she concludes. Photo: Åsa Wallenberg, CEO SPP Fonder (c) SPP