Andra AP-fonden (AP2) continued its intensive efforts to integrate sustainability into its asset management in 2021. The Fund’s approach to sustainability is based on the conviction that sustainability leads to better asset management results, which benefits the income pension system and pensioners. The Fund began working on sustainability issues already at launch just over 20 years ago, and among other things the Fund was one of the founding signatories to the UN’s Principles of Responsible Investment (PRI). AP2 has frequently been a forerunner, for instance, in respect of 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 the alignment of the portfolio with the goals of the Paris Agreement.

“Since the end of 2020, the Fund’s global equity and credit portfolios have been managed in accordance with the criteria of the EU Paris-Aligned Benchmark (PAB). This means that the Fund is no longer invested in around 250 companies because they receive revenue from coal, oil or gas. In 2021, the Fund worked on analysing and developing PAB for the Fund’s management of Swedish equities and in 2022, the Fund will continue to adapt indices and portfolios for other assets in accordance with the criteria for PAB,” says Eva Halvarsson, CEO of AP2.

“The total carbon emissions of the Fund’s equity portfolios are continuing to decrease and declined by 20 per cent in 2021 compared with the previous year. This was mainly due to changes in holdings, but the companies also contributed a certain amount,” says Eva Halvarsson.

“In 2021, we continued to develop our work on human rights. We have begun the implementation of our updated Policy on Human Rights and have started working towards our long-term goal, which is that the Fund will continue to implement the UN Guiding Principles and that our operations should conform to these by 2025. In 2021, we implemented processes for due diligence and initiated proactive dialogues. We have also published our second report in accordance with the UN Guiding Principles Reporting Framework (UNGPRF),” says Eva Halvarsson.

“In 2020, we began investing in sustainable infrastructure, and in 2021 we made additional investments, including an investment made in in partnership with AP1, AP3 and AP4 in the battery manufacturer Northvolt. This type of investment, where we, as representatives of long-term pension assets, are able to invest in projects and companies that contribute to the necessary transition to a low-carbon economy, is growing in scope and importance, both for society at large and as portfolio weighting for us as asset managers,” says Eva Halvarsson.

Significant events during the year

  • In 2021, the Fund worked on analysing and developing the Paris-Aligned Benchmark (PAB) for the Fund’s management of Swedish equities.
  • The Fund published its second Human Rights Report in accordance with the UN Guiding Principles Reporting Framework (UNGPRF).
  • For the fourth consecutive year, AP2 published a report in compliance with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).
  • The Fund was awarded the “Global Stewardship Disclosure Award” by the International Corporate Governance Network (ICGN). The purpose of these awards is to recognise those investors who provide genuine insight into their stewardship policies and how they have been implemented, and whose approach to transparency and reporting provides a model that others might follow.
  • At the beginning of June 2021, the Swedish National Audit Office published an audit report on the AP Funds’ sustainability work. It showed that the AP Funds’ sustainability work is appropriate in relation to their mission.

The English versions of AP2’s Sustainability and TCFD reports for 2021 will be available at from mid March.

For further information, please contact:

Eva Halvarsson, CEO of AP2, tel. +46 (0)31 704 29 00 or
Ulrika Danielson, Head of Communications and Corporate Governance, tel. +46 (0)709 50 16 13