​Öhman Fonder Case Study

Öhman Fonder: Considering climate change across the investment process

Objective: Öhman's objective was to gain a better understanding of their portfolio's exposure to carbon risk. For this, Öhman enlisted the help of the South Pole Group to conduct a comprehensive portfolio carbon footprint of twelve internally managed public equity funds against their respective benchmarks. Öhman saw the work with South Pole Group as an essential first step in understanding potential climate-related risks in its portfolio. The results of the analysis will be used to help inform Öhman's engagement strategy, as well as to develop new low carbon products and strategies going forward.

The context

As a responsible investor, Öhman feels that it has a responsibility to help pave the way to a low carbon economy. Öhman works with an array of institutional clients such as the Swedish church, workers' unions and foundations. Amongst these, municipalities and county councils are some of the most important actors when it comes to implementing environmental policies. Increasingly, they are also being encouraged to consider the climate impact of their investments as part of their wider environmental strategy. The assets managed can be their own capital, earmarked for future pension liabilities and/or foundations that have been donated in the past. These institutions primarily invest in equities and fixed income globally and generally outsource management to external asset managers. Several of the players have started to measure the carbon footprint of their investment portfolio to learn more about the inherited risks and opportunities. More and more are also prioritising asset managers that consider environmental responsibility in their investments.

The challenge

Öhman faced two key challenges: the first was to meet increasing client demand for more transparency regarding the carbon footprint of investments. The second was to translate this demand into meaningful climate action. More and more municipalities and county councils have begun to align their investment policy with their overall environmental policy. For Öhman, supporting these institutional investors in their effort was a key driver in joining the Montreal Pledge and increasing transparency regarding their investment carbon footprint.

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