The demand for critical minerals, such as copper, lithium and nickel, is high as they are used, among other things, to expand renewable energy and other fossil-free technologies. Swedish banks and funds have SEK 33.7 billion invested in the extraction.
But several of the investments have been made in mines that are accused of environmental destruction and human rights violations.
It is remarkable that Swedish savings are invested in such controversial mining companies and that it is done through funds that have promised to pay extra attention to sustainability issues. It is disappointing, says Karin Lexén, Secretary General of the Swedish Society for Nature Conservation.
Pollutes land
In Congo-Kinshasa, eleven banks and funds have invested in the Kamoa-Kakula Copper Mine, a mine that is accused, among other things, of polluting waterways and taking land from local communities.
Despite this, SEB, Sjunde AP-fonden, SPP/Storebrand Sverige and Länsförsäkringar invest through their “light green” funds, and Handelsbanken and Danske Bank also invest through “dark green” funds that aim to have sustainability as their goal.
The Antapaccay copper mine in Peru has been accused of polluting water and air for about twenty years. Despite the company being blacklisted by around 50 international investors, and a number of Swedish ones, the Seventh Swedish National Pension Fund has invested SEK 529 million in the owner Glencore. The fund is a so-called light green fund that claims to promote sustainability in its investments.
Frustrated savers
This is not the first time that green funds have been shown to have elements that are anything but green. Jakob König, who heads the Fair Finance Guide, understands if savers feel frustrated.
It's a huge problem for the industry, and I think savers are right to be critical – there has been far too much greenwashing. Banks need to give a fair picture so savers can be confident that their choices are not destroying the planet.
His advice is to be critical of the information you receive and choose funds that place high demands on sustainability.
So-called critical minerals, or critical raw materials, are primarily metals such as lithium, cobalt, manganese and rare earth metals.
Several of them are used in technology that is important for the transition to a fossil-free society, such as batteries, wind turbines, solar panels and electric cars.
Today, most of the critical raw materials are imported from countries outside the EU.
