Home HomeSwedenLivingWorld world_2_fill WorldBusiness BusinessSports sports-soccer SportsEntertainmentEntertain

Swedish fund giants invest billions in oil

Nordea and the state-owned Seventh AP Fund are the ones that have invested the most of the fund savers' money in the fossil industry. "Incredibly irresponsible", says Jakob König at Sweden's Consumers, who are behind the study. Nordea is fighting back. The definition of fossil companies is very misleading.

» Updated: 17 September 2024, 05:55

» Published: 12 September 2024

Swedish fund giants invest billions in oil
Photo: Eric Risberg/AP/TT

In total, 200 billion kronor have been invested by the largest Swedish banks, fund companies, and pension managers in the fossil industry, primarily in oil and gas extraction companies, but also in coal, according to a review by Fair Finance Guide, a part of the organization Sveriges Konsumenter.

"Investing savers' money in expanding fossil fuel companies in the midst of a burning climate crisis, where we have just experienced the warmest year ever, is incredibly irresponsible," says Jakob König, responsible for the study, in a written comment.

The Nordea group, which is the largest bank and therefore has the most managed capital, tops the list with 52 billion kronor of savers' money invested in the fossil industry, followed by the state-owned Seventh AP Fund, with 45 billion kronor.

However, Nordea does not agree with the report.

"Most of the companies where Nordea has the largest exposure are companies in electricity production with very ambitious transition goals in line with the Paris Agreement," says Eric Pedersen, the bank's head of Responsible Investments, in a written comment to TT.

Alecta stands out

Many of the oil and gas companies have a strategy to expand their extraction of fossil fuels.

Completely against the climate goals of the Paris Agreement, says Jakob König to TT.

Alecta stands out in the other direction, as the only fund company that has not invested a single krona in the fossil industry. This is due to a more active management strategy, unlike many of the others that have a more passive management that follows the index, according to Jakob König.

This is the recipe for sustainable investments, says Jakob König.

"Wrong direction"

Over time, the banks have steered a significant portion of the managed capital away from the climate-friendly industry, according to König. For example, SEB and Handelsbanken now have "only" around three billion each in managed fossil capital.

The explanations that funds and banks often give for staying as owners in these companies are that they set climate requirements in the boardrooms. But that doesn't hold, he believes.

But the companies don't listen and continue in completely the wrong direction.

Nordea doesn't buy it.

"We agree that there are companies on the list that are problematic. However, there is no scientific support for the idea that exclusion is the most effective approach," says Pedersen.

Tags
TTT
By TTThis article has been altered and translated by Sweden Herald

More news

The regional tax will be raised next year
1 MIN READ

The regional tax will be raised next year

Astra Zeneca's China Chief Arrested by Police
1 MIN READ

Astra Zeneca's China Chief Arrested by Police

More rate cuts - but risk of turmoil with Trump
2 MIN READ

More rate cuts - but risk of turmoil with Trump

Svantesson: Trump Politics May Increase Inflation
1 MIN READ

Svantesson: Trump Politics May Increase Inflation

Major Banks Lower Mortgage Rates
1 MIN READ

Major Banks Lower Mortgage Rates

Central Bank Economist: Central Bank Cuts Interest Rate Too Late
2 MIN READ

Central Bank Economist: Central Bank Cuts Interest Rate Too Late

How You Are Affected by Lowered Interest Rates
2 MIN READ

How You Are Affected by Lowered Interest Rates

Thedéen expects turmoil after Trump's victory
2 MIN READ

Thedéen expects turmoil after Trump's victory

Inflation upswing does not threaten interest rate cuts
3 MIN READ

Inflation upswing does not threaten interest rate cuts

Stockholm Stock Exchange rises after interest rate cut
1 MIN READ

Stockholm Stock Exchange rises after interest rate cut

Most up on Asian stock exchanges
1 MIN READ

Most up on Asian stock exchanges

This is how your wallet can be affected by Trump's victory
2 MIN READ

This is how your wallet can be affected by Trump's victory

Cheerful on Wall Street after Trump win
1 MIN READ

Cheerful on Wall Street after Trump win

Thousand-kronor notes to be picked up when the Central Bank increases the pace
3 MIN READ

Thousand-kronor notes to be picked up when the Central Bank increases the pace

Swish up and running again after disruption
1 MIN READ

Swish up and running again after disruption

Trump's company is soaring on the stock exchange
1 MIN READ

Trump's company is soaring on the stock exchange

Swedish Export Threatened by Trump Victory
2 MIN READ

Swedish Export Threatened by Trump Victory

Sameby's appeal against mining company rejected
1 MIN READ

Sameby's appeal against mining company rejected

Inflation Expectations Fall
1 MIN READ

Inflation Expectations Fall

Better than expected for Novo Nordisk
1 MIN READ

Better than expected for Novo Nordisk