Swedish pension fund Alecta has said it plans to target firms falling short on ESG.
The fund, with $110 billion under management, has said it will impel companies it invests in to behave more ethically by identifying companies have low ESG standards.
Carina Silberg, head of corporate governance and sustainability at Alecta, said the fund will proactively examine what the 100 or so companies it invests in are doing when it comes to ESG and if shortcomings are identified, “targeted action” will follow. Alecta also says that obtaining accurate climate data is one of the biggest challenges. Its analysis of Scope 3 emissions has shown third-party estimates often underestimate a company’s self-reported data by as much as a factor of 20.