Nordic Region Pensions and Investment News (nrpn)
June 14, 2010

In a bid to battle the threat of climate change, the Church of Sweden has revised its investment guidelines and restricted its investments in companies extracting fossil fuels.

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The church is looking to further strengthen its focus on climate change and clarify its investment policy. As a result of the new guidelines, the church will exclude energy companies that are extracting fossil fuels in favour of investments in companies specialising in renewable energy. It also has a best-in-class approach and is looking to identify and invest in companies that offer sustainable and climate-smart products and services.

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Indeed, many believe that excluding the large energy companies is a risky strategy. Magnus Furugård, president and managing director of GES Investment Services International, says: “It’s a risky strategy in the short to medium term. But it’s also a matter of values and maybe the church is in a situation where its members would accept lower returns in order to exclude this sector.”

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“I don’t think it’s the beginning of a new trend – rather the exception to the rule. Most investors prefer to engage with energy companies to increase the focus on renewable energy,” adds Mr Furugård

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By Caroline Liinanki

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