Andra AP-fonden (AP2) has, since its inception, worked on integrating sustainability into its portfolio management. This enables the Fund to reduce risks and generate improved opportunities for higher returns. AP2 is now taking the next step in its sustainability programme. With the support of the changes to the AP Funds Act regarding exemplary fund management, the Fund has divested from a total of about 60 tobacco companies and companies involved in the maintenance and modernisation of nuclear weapons systems.
AP2’s sustainability work is based on the conviction that it leads to an improved management return, thereby making a positive contribution to the Swedish income pension system and for pensioners. This is why the fund integrates the sustainability work into its asset management.
On 1 January 2019, new investment rules regarding sustainable asset management for the AP Funds came into effect. According to the Act, the AP Funds must manage their assets in an exemplary way through responsible investments and responsible ownership. The new regulations entail a higher level of ambition for the AP Funds’ sustainability work.
In line with the requirements of the new legislation, AP2 has analysed the conventions that are aimed at restricting the use, scope or distribution of certain products or businesses over time. The Fund has evaluated the need for a changed approach based on the underlying purpose of the international conventions.
With the support of the new regulations regarding exemplary management, AP2 has divested from tobacco companies and companies involved in the maintenance and modernisation of nuclear weapons systems.
The divestment from tobacco companies is in line with the intention of the convention on tobacco control: a sharp reduction in tobacco consumption and the harmful effects of tobacco smoke.
Divestments from companies that are involved both in the maintenance and modernisation of nuclear weapons systems are aligned with the intention of long-term disarmament of nuclear weapons in all countries as expressed in the Non-Proliferation Treaty (NPT). AP2 has previously excluded nuclear weapons companies that operate in countries that are not allowed to have them according to NPT.
For more information, please contact Ulrika Danielson, Head of Communications, Tel. +46 (0)31 704 29 00.
AP2 is one of five buffer funds within the Swedish pension system and one of the largest pension funds in northern Europe. AP2 has assets under management of SEK 334.8 billion (31 Dec 2018) in virtually every asset class and all over the world. The Fund is a long-term and responsible fund manager that has an important mission – to give those who have worked in Sweden the best possible future pension by reducing the risk of the so called the brake being released. www.ap2.se