Why is it important to invest sustainably?
Insurance and pension savings are areas where we can use our consumer power to invest our money in sustainable ways. Insurance is not just a big expense for both individuals and companies. Every year, billions are paid into insurance companies, which then invest the money in funds and shares. The Swedish insurance industry manages a capital of just over SEK 2,500 billion. It is not uncommon for this money to be invested in industries that are environmentally unsustainable. There are also ethical aspects of social and economic sustainability to take into account. Our insurance premiums may end up in the arms industry or nuclear weapons production.
The insurance companies are also consumers in claims settlement where services and products are purchased. The main thing here is to ensure that the products used in repair and replacement are environmentally sustainable. Recycling of parts and materials is, for example, a way to save energy and natural resources.
Pension
In general, the same applies to pension savings as to fund savings. At the Pension Authority (in Swedish), you can apply and read more about different pension funds, what they consist of and what guidelines there are. It is also possible to filter its search for sustainability funds, funds with low carbon dioxide risk in the transition to a world economy with low carbon dioxide emissions with limited exposure to fossil fuels, and divest unsustainable funds. You can also go in and read the Fair Finance Guide (in Swedish) for more tips on how you can save for your pension sustainably and put pressure on the central government pension fund to invest sustainably.
Labels that can facilitate
You as a consumer can look for the label Bra Miljöval (Good Environmental Choice). There are currently a number of insurances for both homes and cars that are marked with Bra Miljöval (Good Environmental Choice). The requirements placed on the insurance company to receive the Bra miljöval (Good Environmental Choice) label are:
- The company acts environmentally conscious in procurement and operations.
- Employees within the company have good environmental knowledge and act to reduce the company’s environmental impact.
- That the company can show that damages are regulated in a way that is based on high demands on environmental considerations.
- The company reports how the insurance capital is invested, with the aim of operating with a high degree of environmental consideration.
- The company helps insurance customers to more environmental adaption in their everyday lives.
Would you like to know more?
In that case, another advice is to use the Fair Finance (in Swedish) guide where you can review different banks based on climate, environmental and ethical criteria. Several of the banks also sell insurance. The guide also provides a good overview of various Swedish banks’ sustainability work and opportunities to get tips on how to save sustainably. Not least, it is important when it comes to the premium pension (orange envelope) that is invested in funds.
Read more about eco-labeled home insurance and insurances labeled with Bra Miljöval (Good Environmental Choice) at the Swedish Society for Nature Conservation (both in Swedish).
Page updated 2021.
