Founded over 100 years ago, Folksam is today one of the largest Swedish insurers in non-life, life and pension business: one out of two Swedes is insured by Folksam. As a mutual company, its vision is for people to feel secure in a sustainable world.
Climate change effects everyone and Folksam has a long tradition of integrating sustainability in its business. Specific examples of this include in-house traffic researchers that test which motor vehicles have the best safety system and also have the least harmful impact on the environment.
In terms of investments, Folksam introduced its investment exclusions and engagement criteria in 2001. Over time this has changed to match with new directions and international conventions. In 2006, Folksam was one of the founding members that established the UN-supported Principles for Responsible Investments (PRI).
Exclusions initially included those of a non-ethical nature, including tobacco, weaponry and alcohol, because customers wanted these removed from their portfolios. Today, the investment exclusions are looked at differently and much more broadly because of the impact of climate change.
In 2019, Folksam became a founding member of the UN-convened Net Zero Asset Owner Alliance. Today, there are over 70 asset owners who work together in their commitment to transition their portfolios to net zero emissions by 2050, consistent with The Paris Agreement.
In April 2021, Folksam published new climate targets for 2025 for its investment portfolios, where the climate footprint from equities, corporate bonds and real estate will be reduced by 29%. The emissions target will primarily be achieved by engaging with current holdings and influencing companies to reduce their emissions. In addition, the Folksam Group is adopting new goals to promote the availability of green investments.
Folksam has been working with a number of companies that are making a real difference in the fight to combat climate change. For example, Folksam have invested in SSAB, a steel producer with a difference. SSAB and Volvo are collaborating together and have produced the world’s first autonomous vehicles using fossil-free steel: a process in which coal traditionally used in the steelmaking process is replaced with green hydrogen derived from electrolysis.
Influence also plays an important role for Folksam in the drive to avert climate change. Folksam is also using its influence to encourage other companies to speed up their climate change policies, as it did as part of a coalition that recently called for stronger action by the HSBC on climate change in 2021.
