Andra AP-fonden (AP2) continued to work intensively to integrate sustainability into its management activities in 2020. The Fund’s approach to sustainability is based on the conviction that sustainability leads to better management results, and is thus advantageous for the income pension system and for pensioners. AP2 has been a pioneer on several occasions, for instance, with its investments in green and social bonds, sustainability requirements in agreements entered into with private equity funds, fossil energy company divestments, reporting in accordance with TCFD and UNGPRF and now, most recently, aligning the portfolio with the Paris Agreement.
“I am very proud that we adapted our internally managed holdings of global equities and corporate bonds during the autumn to bring them in line with the EU Paris-Aligned Benchmark, without compromising the return and risk characteristics of the portfolios. This alignment of the portfolio is, to our knowledge, unique in that it includes holdings of both corporate bonds and equities,” says Eva Halvarsson, CEO of AP2.
“Among other things, this means a reduction in the carbon footprint of the portfolios of global equities and corporate bonds by about 70 per cent when compared to market-weighted indices,” says Eva Halvarsson.
“There is so much going on in the area of sustainability. We have been working for many years to integrate sustainability into all of our management activities, and it is pleasing to see there is an ever-increasing knowledge among investors and companies and that discussions around the issues are becoming more nuanced,” says Eva Halvarsson.
Key events during the year
- The Fund has internally developed multi-factor indices for global equities and corporate bonds that meet EU Paris-Aligned Benchmark (PAB) criteria. Among other things, this means a reduction in the carbon footprint of the portfolios of global equities and corporate bonds by about 70 per cent when compared to market-weighted indices.
- During the year, the Fund has developed a human rights strategy.
- For the third consecutive year, AP2 published a report in compliance with the TCFD (Task Force on Climate-related Financial Disclosures) recommendations.
- The United Nations-backed Principles for Responsible Investment (PRI) have included AP2 in its Leaders’ Group 2020. This group showcases signatories at the cutting edge of responsible investment. The theme for the year was climate reporting.
- The Fund was nominated by ICGN (International Corporate Governance Network) for the Global Stewardship Disclosure Awards. The purpose of these awards is to recognise those investors who provide genuine insight into their stewardship policies and how they are implemented, and whose approach to disclosure provides a model that others might follow.
The English versions of AP2’s Sustainability and TCFD reports 2020 will be available at www.ap2.se from mid March.
For more information, please contact:
Eva Halvarsson, CEO of AP2, +46 (0)31 704 29 00 or
Ulrika Danielson, Head of Communications and Corporate Governance, +46 (0)709 50 16 13
Andra AP-fonden is one of five buffer funds within the Swedish pension system and one of northern Europe’s largest pension funds. The Fund’s assets under management total SEK 386.2 billion (31 December 2020), and cover essentially all asset classes across the entire world. We are leading specialists in the Swedish pension system and strive to be a world-class asset manager. We are a global leader in integrating sustainability in our investments, for the benefit of the pension system. The Fund is a long-term and responsible asset manager. www.ap2.se