Nordic institutional investors bolster local green investment coalition

On the 10/29/20 at 7:57AM


Adrien Paredes-Vanheule

The Climate Investment Coalition is expanding from Denmark to other Nordic countries in order to share green investments' commitments by 2030.

Prime Ministers from the eight Nordic Countries, gathering at a meeting on Wednesday, announced they would back investment mobilisation from institutional investors to scale-up green finance and investments by 2030. The eight ministers jointly declared that the Nordic countries can and "should take the lead on green recovery."

Nordic pension fund CEOs expressed their aim to mobilise collective commitments towards green investments by 2030 through the Climate Investment Coalition, which is a public-private partnership between the government of Denmark, Insurance & Pension Denmark, the Institutional Investors Group on Climate Change (IIGCC) and World Climate Foundation.

In 2019, Danish pension funds pledged to invest $50bn in green investments by 2030, that came in addition to some $19bn green investments already achieved. The Climate Investment Coalition stated that a process will now take place to collect commitments for green investments from other Nordic institutional investors in Finland, Iceland, Norway, Sweden, the Faroe Islands, Greenland and Åland. These commitments will be shared at the next global climate negotiations during COP26 in Glasgow in November 2021 with the aim of supporting stronger climate ambition.

Niklas Ekvall, CEO at AP4, explained: “We and other long-term investors contribute by engaging with the companies we invest in, and by investing in sustainability themed investments that will contribute to and benefit from the necessary transition to a low carbon economy. AP4 frequently cooperates with other likeminded institutional investors to support the transition to a climate neutral economy. Hence, it is very natural for AP4 to commit to this very important Nordic initiative.

Risto Murto, president and CEO, Varma, Finland, added: “We promote collaboration within the financial markets in order to mitigate and adapt to the effects of climate change. Climate Investment Coalition offers a way to take part in the public debate on the impacts of climate change and together develop investments aligned with the Paris Agreement.”

Ólafur Sigurðsson, CEO, Birta Pension Fund & head of a subcommittee under the Icelandic Pension Funds Association, said: “Icelandic pension funds have expressed obvious interest and support towards sustainable development. Both geothermal- and hydropower are great examples of successful green investments in Iceland. Just recently pension funds and the Icelandic government signed a declaration of intent towards sustainable investments. I have a strong reason to believe in the cross border extension of such a coalition with Nordic investment community.”