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Sweden Bans Non-ESG Funds From $90 Billion Pensions Pot

  • Program will replace a system that was dragged down by scandal
  • Sweden expects to select 150 funds in the second quarter
Updated on

Sweden is inviting international asset managers to help allocate 1 trillion kronor ($90 billion) of pension savings, but says it won’t accept applications from firms that don’t incorporate ESG into their strategies.

The new framework will replace a system tainted by an embezzlement scandal that infuriated Swedish taxpayers and triggered calls for a more robust setup. The upshot is that only investment firms that integrate environmental, social and governance goals into their work need apply, according to the Office of the Swedish Fund Selection Agency, which is overseeing the process.