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.
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.
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.”
“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
By Caroline Liinanki