Alecta

As one of the first super companies to undertake a whole-of-fund level financed emissions and transition risk analysis, Spirit needed clear analysis to enable a detailed, high conviction plan for specific actions to reach their stated targets.

They needed a detailed breakdown of their financed emissions across their total portfolio – the main portion of their Scope 3 emissions. They also needed to quantify their transition risk in financial terms, to balance social and fiduciary duties.

Lastly, to be equipped with the tools to plan, they needed to understand where the exposure and risk was in the portfolio: which managers, funds, or individual holdings were key contributors.

• Tools integrated seamlessly within the existing tech stack.

• Improved visibility into Scope 1, 2, and 3 emissions.

• Leveraged risk, ESG, and portfolio analytics in one tool.

• Realized increased efficiency.

• Streamlined scenario analysis and risk evaluation.

• Improved climate risk analysis processes.

Faced with new climate reporting regulations and a desire to improve their climate risk analysis capabilities, Alecta needed more efficient tools to manage and analyze data. The firm sought a reliable, science-backed way to better measure, manage, and report on financed emissions. To meet standards like IFRS S2, Corporate Sustainability Reporting Directive (CSRD), and Sustainable Finance Disclosure Regulation (SFDR), the pension fund manager identified three non-negotiables: access to reliable emissions data (Scope 1, 2, 3), climate performance measurement and reporting, and analytics for scenario analysis (including NFGS/IPCC climate models). With their specific needs clearly defined, the team began searching for a partner.

Already familiar with FactSet’s high-quality portfolio risk measurement tools, Alecta chose FactSet Carbon Diagnostics because of the platform’s machine learning engine, analytical capabilities, and seamless fit into their investment technology and workflows. With Carbon Diagnostics, Alecta gained powerful insights into how its portfolio might perform under various climate and policy scenarios and increased efficiency in their daily workflows. Using sophisticated carbon attribution models alongside FactSet Carbon Diagnostics, Alecta obtained a detailed breakdown of changes in financed emissions. The report highlighted shifts resulting from trading activity— such as investments or divestments—and changes in emissions performance. More importantly, it distinguished between reductions driven by actual climate progress and those influenced by market value fluctuations. “FactSet Carbon Diagnostics allows us to effectively evaluate multiple climate transition scenarios and identify the sectors and scenarios contributing to portfolio risk,” said Jonas Dannberg, Risk Analyst at Alecta. “Comparing our portfolio to benchmarks under different scenarios enables us to evaluate our own portfolio in a more critical way.”
FactSet helped Alecta enhance emissions estimates across all three Scopes, delivering a more comprehensive view of its carbon footprint.

By processing vast amounts of financial data and delivering scientifically backed emissions estimates, Carbon Diagnostics significantly enhanced Alecta’s internal climate risk analytics process.
This data allows Alecta to better evaluate how companies are positioned for the climate transition and identify key exposure areas. Consolidating risk, ESG and portfolio analytics into a single system helped Alecta’s team redirect their efforts toward more valuable, high-level analysis. Unifying their existing risk function with Carbon Diagnostics ensured consistency, easy integration, and the ability to assess exposures under climate scenarios like NGFS and IPCC. As regulations tighten, Alecta is now equipped to conduct risk assessments, ESG evaluations, and portfolio analytics using a unified, comprehensive tool.