Folksam is a Swedish insurance company that offers a wide variety of insurance, savings and loan products. With about 4 million customers, it is one of Sweden’s largest investment managers.[i] As of June 2016, Folksam holds SEK 385,185 assets under management.[ii]
Folksam excludes companies that are involved in the development, manufacture and maintenance of nuclear weapons or delivery systems designed for nuclear weapons, as well as companies trading in these weapons.[iii]
The exclusion policy applies to all of Folksam’s commercial banking and asset management activities, regardless of whether they are managed internally or by external asset managers.[iv] However, Folksam does not currently apply the exclusion policy to index-linked products managed by external managers.[v]
Folksam’s exclusion list is publicly available based on research by MCSI and SIX. As of 23 May 2016, the following companies were exclude from the Folksam investment universe: Airbus Group; Babcock International Group; BAE Systems; Boeing CO; EADS[vi]; Elbit Systems; Finmeccanica; Flour Corp; Gencorp[vii]; General Dynamics; Honeywell International; Jacobs Engineering; L-3 Communication; Lockheed Martin; Northrop Grumman; Raytheon; Safran; ST Engineering, and; Textron.[viii]
We recommend Folksam expand the scope of its exclusion policy to apply to all financial products, including index-linked products managed by external managers. We look forward to engaging with Folksam, so a strong and comprehensively applied policy may be listed in the Hall of Fame in a future update of this report.
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Congratulations Folksam. I saw on www.dontbankonthebomb.com that you have a policy limiting investments in nuclear weapons. I think it’s really important that you share my concern about these weapons, and I appreciate that there is a public policy.
However, the policy does have some loopholes and the Don’t Bank on the Bomb report shows how you still might invest in nuclear weapons producers. I am concerned about this, because Folksam also invests my money and I don’t want to be associated in any way with the production of these inhumane weapons.
It would be great if Folksam made the following change to make the policy airtight:
• Expand the scope of the exclusion policy to apply to all financial products, including index-linked products managed by external managers.
With kind regards,
[ii] Folksam, “Interim Report January – June 2016”, page 3, available at: http://media.folksam.se/en/files/2016/07/S12567_Delarsrapport_jan-juni_2016_ENG_k4.pdf, viewed 10 October 2016.
[iii] Folksam, “Annual Report and Sustainability Report 2015”, p.44, available at http://media.folksam.se/en/files/2016/04/S12430_Folksam-Annual-Report-Sustainability-Report-2015.pdf, viewed 10 October 2016; Folksam, written response to Profundo dated 23 May 2014.
[iv] Folksam, written response to PAX dated 26 April 2015.
[v] Folksam, “Företag i vilka vi inte placerar”, website Folksam (http://www.folksam.se/om-oss/vart-hallbarhetsarbete/ansvarsfullt-agande/vara-placeringskriterier/uteslutna-foretag), viewed 10 October 2016; Folksam, written response to PAX dated 23 June 2015.
[vi] EADS renamed itself in 2014 and is now known as Airbus Group.
[vii] GenCorp renamed itself in 2015 and is now known as Aerojet Rocketdyne.
[viii] Folksam, “Företag i vilka vi inte placerar”, website Folksam (http://www.folksam.se/om-oss/vart-hallbarhetsarbete/ansvarsfullt-agande/vara-placeringskriterier/uteslutna-foretag), viewed 10 October 2016