In June 2023, ICMIF member the Folksam Group became the sole investor in a unique bond issued by the World Bank that aims to finance sustainable projects in developing countries that also include a focus on road safety. Folksam says it is now taking the next step to increase the interest of private actors to contribute to road safety development, where investments in road safety are an important part.
Every year, 1.3 million people die in preventable road accidents – a figure that the United Nations (UN) aims to halve by 2030. Road accidents are the dominant cause of death globally among children and young people, and 50 million people are injured in traffic every year.
“We have embarked on a journey focused on reshaping the future of road safety and investment. It is a step in the right direction that more and more investors are no longer satisfied with purely financial measures but are also looking for investments that can contribute to a more sustainable world. To speed up this, for example, a clearer structure is required for reporting traffic safety footprints,” says Ylva Wessén, President and CEO of the Folksam Group.
To reach the goal of halving all road deaths and accidents by 2030, the World Bank estimates that additional funding of about USD 260 billion is needed and that private funds are needed to achieve this. Road safety bonds could be a way forward.
“Insurance and occupational pension companies in Sweden manage just over SEK 6,400 billion, capital that can make a big difference in the world if invested correctly. We need to find a model where private capital can be invested in road safety enhancing projects, in a way that is beneficial to all parties; partly so that projects at local level can get the necessary financing for increased road safety, and partly so that investors can make a safe and attractive investment while saving many lives,” concluded Ylva Wessén.
Folksam, together with Global Road Safety Partnership (GRSP), is arranging a round table discussion, where the participants will discuss opportunities to stimulate, measure and accredit road safety performance to attract more investors from the private sector. The participants include large private sector organisations such as Volvo, AXA Partners, Greater Than and 3M and will include also UN agencies, government agencies and other international organisations.
