Swedish Fund Selection Agency expands use of Clarity AI in sustainability fund procurement

Sweden’s Fund Selection Agency (FTN) and the Swedish Pensions Agency have announced new three-year contracts with two analytics providers – MSCI ESG Research and Clarity AI. According to SFSA, both contracts are aimed at sustainability fund analysis and procurement.

Although FTN has not disclosed the details of the specific Clarity AI product in question, a spokesperson for the agency told Net Zero Investor that Clarity AI has been used previously in fund procurement. The new contract reflects a longer, more formal contract the provider. 

In addition, the agency's statement outlines that “the procured systems will be used both for procurement of funds and for ongoing monitoring of funds within the premium pension system”.

“This ensures the Swedish Fund Selection Agency’s access to relevant sustainability data over a longer period of time”, commented the agency’s executive director Erik Fransson.

FTN, which procures funds for the country’s public pension schemes, requires fund managers to meet a range of mandatory sustainability requirements. Fransson says the choice of provider does not change FTN’s position in that regard. The criteria include compliance and endorsement of UN Principles for Responsible Investment and a commitment to not invest in companies with over 5% turnover attributable to thermal coal.

“The fact that these particular providers have been selected does not affect the agency’s positions on individual sustainability issues; the systems are used solely as input for information gathering and analysis”, said Fransson.

Clarity AI has previously collaborated with the UK’s National Employment Savings Trust (NEST), to improve ESG data integration. This included NEST’s fund manager monitoring efforts.