Billions of Swedish savings go to climate worst offenders
Swedish fund management firms and pension funds invest over SEK 200 billion of Swedish savings into the fossil fuel sector, including in oil companies with the most aggressive expansion plans. Nordea and AP7 represent nearly half of this investment, according to a recent survey by the Swedish Fair Finance Guide.
An audit reveals that 19 of Sweden's major banks, fund management firms, and pension funds have invested a total of 203 billion Swedish Krona in companies within the fossil fuel sector. These investments span over 150 entities primarily engaged in oil and gas extraction. Additionally, a significant portion of these companies are actively expanding their fossil fuel ventures.
"Investing savers' money in expanding fossil fuel companies in the middle of a burning climate crisis, where we have just experienced the warmest year ever, is incredibly irresponsible. I think many Swedes will be very upset about that," says Jakob König, who heads the Fair Finance Guide Sweden.
All audited financial entities, with the exception of Alecta, invest in companies actively seeking new fossil fuel reserves. This is in direct conflict with the climate objectives set by the Paris Agreement. Notably, they have investments in 17 of the most aggressive oil companies with expansive drilling plans, totaling an investment of SEK 46 billion. These firms aim to increase their oil production by 113 billion barrels over the coming years. Major oil corporations such as Exxon, Shell, and BP are among those planning new oil fields in around twenty countries, including Kazakhstan, Nigeria, and Angola. Many of these companies also employ high-risk extraction methods that pose significant environmental threats, like Arctic drilling and oil sands extraction.
"Fund management firms justify their investments by claiming they impose climate conditions, yet the companies ignore these and persist along the wrong path. We must channel funds towards businesses that are dedicated to climate solutions," states Jakob König.
The size of the investments and the type of fossil fuel companies involved differ greatly between fund companies. By far the largest fossil investments are made by Nordea (SEK 52 billion) and the state-owned AP7 (SEK 45 billion), which manage the pensions of 5.5 million Swedes. The pension company Alecta is the only one in the audit that has no investments at all in fossil fuel companies.
The recommendation to Swedish savers is to move their money to fossil-free alternatives.
"Opt for fossil-free products or switch fund companies if you prefer not to give to businesses that invest in the worst climate offenders," recommends Jakob König.
How you can take action
• Sign the petition against AP7 at Fund Your Mother
• Use our guides for more sustainable savings and premium pension choices
