Andra AP-fonden and Climate & Company join forces to make deforestation due diligence practical & workable

Andra AP-fonden (AP2) and the German-based sustainable finance think tank Climate & Company have initiated a collaboration to systematically identify deforestation exposure in global portfolios. Through the collaboration, Climate & Company will assess and combine existing resources to create a publicly accessible workflow to be tested and applied to AP2’s holdings in listed equities. This endeavour aims to highlight how far practitioners get with existing (data) resources and pinpoint any apparent gaps.

Nature is not just a resource to be exploited. It is essential for human existence and a vast share of economic activity is directly or indirectly dependent upon having healthy ecosystems. Alarmingly, however, biodiversity is declining faster than at any time in human history, with far-reaching and irreversible consequences. Deforestation and land conversion are one of the main drivers of biodiversity loss and climate change. Sustainable land use and forest conservation play a crucial role in protecting biodiversity and limiting global warming.

AP2, as a signatory to the Financial Sector Commitment on Eliminating Agricultural Commodity-Driven Deforestation, aims to have a portfolio that does not contribute to deforestation by 2025. This is also in line with the Fund’s climate commitment to net-zero greenhouse gas emissions by 2045.

“We in the financial sector have a key role to play in accelerating the transition towards a deforestation-free economy through engagement with our portfolio companies and by reallocating capital. Through the collaboration with Climate & Company, AP2 is contributing to the development of practical guidance that becomes public and that the financial sector can use to map and quantify the deforestation risk in their portfolios,” says Åsa Mossberg, sustainability strategist at AP2.

“Through our collaborative approach, we offer investors clear guidance on systematically identifying potential exposure to deforestation. Our publicly accessible guideline aims to provide the required resources, minimising the time and staff resources needed to fulfil deforestation-free commitments. By doing so, we aim to demonstrate to regulators that existing data and tools are sufficient to get started, while also highlighting crucial gaps that, when addressed, will simplify evaluations in future,” said Malte Hessenius from Climate & Company.

The collaboration between AP2 and Climate & Company is funded by the Gordon and Betty Moore foundation.

For more information, please contact:

Åsa Mossberg, Senior Sustainability Strategist at AP2, åsa.mossberg@ap2.se or
Ulrika Danielson, Head of Communications at AP2, ulrika.danielson@ap2.se or
Malte Hessenius, Climate & Company, malte@climcom.org

Andra AP-fonden’s half-year report, January-June 2023 – Six months characterised by tentative improvements in the global economy

Andra AP-fonden (AP2) reported a total return of 4.8 per cent, after expenses, for the first half of 2023. A profit of SEK 19.4 billion was achieved and the fund capital reached SEK 423.9 billion. During the period, SEK 2.6 billion was transferred to the pension system.

In the first half of 2023, the global economy performed better than expected, but with growth forecasts still subject to considerable uncertainty. Lower energy prices helped to dampen overall inflation and reduce the pressure on households.

“The first half of the year continued to be affected by uncertainty in the financial markets as a consequence of geopolitical tensions, rising interest rates and economic effects on households. However, the performance of the equity and fixed-income markets during the period was positive, which contributed to a total return of 4.8 per cent,” says Eva Halvarsson, CEO of Andra AP-fonden.

“Our assessment is that the prevailing market uncertainty will continue. Against this background, it is satisfactory that we have spread the risks as far as possible between different types of asset classes and markets, between listed and unlisted assets, and between different management models. Our assessment is that, over time, this will generate a good and stable return, in line with our long-term mission,” says Eva Halvarsson.

“Since it was established, Andra AP-fonden’s return has exceeded the Fund’s long-term return assumption and has thereby contributed positively to the stability of the pension system. Over the past ten years, the Fund’s return has averaged 7.5 per cent,” says Eva Halvarsson.

Key ratiosJan.-June 2023Jan.-June 2022Jan.-Dec 2022
Fund capital carried forward, SEK billion423.9411.7407.1
Net result for the period, SEK billion19.4-27.3-29.2
Net outflows to the national pension system, SEK billion-2.6-2.0-4.7
Fund capital brought forward, SEK billion407.1441.0441.0
    
Asset management costs: operating expenses, %0.070.060.06
Asset management costs: commission expenses, %0.030.050.05
Total asset management costs, %0.100.110.11
    
Return after costs, %4.8-6.2-6.7
Real return after costs, %2.3-9.7-16.9
Annualised return after costs, 5 years, %5.56.15.2
Annualised return after costs, 10 years, %7.58.27.4
Real annualised return after costs, 10 years, %4.86.55.0

Read the full interim report (pdf) on the Fund’s website www.ap2.se

For further information please contact:

Eva Halvarsson, CEO of AP2’s, tel. no. (+46) (0)31 704 29 00 or

Ulrika Danielson, Head of Corporate Communications, tel. no. (+46) (0)709 50 16 13.

AP2’s Female Representation Index2023 – The percentage of women on boards continues to increase, now amounting to 36.1 per cent

For just over 20 years, AP2 has measured the proportion of women on boards and in executive management teams and published the Female Representation Index. For 2023, the proportion of female board members in companies listed on Nasdaq Stockholm continues to increase and now amounts to 36.1 (35.4) per cent. This is the highest level measured since the survey started.

For the first time, the percentage of women on the boards of listed companies is now over 36 per cent, increasing from 35.4 per cent to 36.1 per cent. The stated goal of 40 per cent women on boards has still not been reached, but 43 per cent of the companies reach the target and as many as 85 per cent of the companies have a share of over 25 per cent of each gender.

For the first time since 2010, the percentage of women in listed companies’ management teams has decreased from 27.2 per cent to 26.4 per cent.

The number of female board chairpersons also increases slightly and is now 32 (30) and the number of women who are CEOs increases to 45 (43). For primary listed companies, the number of female board chairpersons has increased from 29 to 32 and from 41 to 44 female CEOs. The percentage of female CEOs this year amounts to 12.5 per cent, which is an increase from 12.1 per cent last year.

“I find it gratifying that our Female Index shows that the proportion of women on boards continues to increase, and that 38.6 per cent of newly elected members are women, which is higher than among the total number of female members. But it is worrying that the trend regarding the increase of women in management is broken”, says Eva Halvarsson, CEO of AP2.

“It is once again interesting to note that nomination committees with women are positively correlated with boards with a higher proportion of women. Companies without a nomination committee have a lower proportion of women on the board than other companies”, says Eva Halvarsson.

Within all market capitalization groups, the proportion of women on the board is increasing. The highest share is found in large cap, where the share amounts to 39.0 (37.7) per cent. This is followed by mid cap with 35.4 per cent (34.8) and small cap with 31.2 (30.6) per cent.

The percentage of women on boards in all listed companies, if the CEO is excluded from the board, amounts to 37.6 per cent. On the boards of primary listed large cap companies, the percentage of women amounts to 39.3 (40.4) per cent if the CEO is excluded from the board.

Background to AP2’s Female Representation Index
AP2 has since 2003 conducted an annual survey to determine the proportion of women at middle management level, in executive positions and on the boards of listed companies. This year is the first time AP2 compiles the Female Representation Index internally, based on data from the ownership service Holdings. The survey for 2023 included 360 primary and secondary listed companies on Nasdaq OMX Stockholm. In addition, the survey records the proportion of women who have graduated from study programmes that constitute the traditional recruitment base for management groups and boards.

For more information Female index – Andra AP-fonden (ap2.se)

Read the entire Swedish report.

For more information, please contact:

Eva Halvarsson, CEO of AP2, phone +46 (0)31 704 29 00

Ulrika Danielson, Head of Communications, phone +46 (0)709 50 16 13

www.ap2.se

The figures refer to the 360 companies included in the survey listed on NASDAQ OMX Stockholm, unless otherwise specified.

Andra AP-fonden reports a negative return after a very challenging year

Andra AP-fonden (AP2) reported a total return after costs of -6.7 per cent for 2022, with a result amounting to SEK -29.2 billion, which reflects how the markets are affected by war in Europe, as well as rising inflation and interest rates. This had a negative impact on the Fund’s equities and fixed-income assets, while the Fund’s non-listed assets achieved a positive return. After net payments to the national pension system of SEK -4.7 billion, Fund assets under management totalled SEK 407.1 billion. The relative return was 0.3 per cent, with Swedish equities management outperforming the benchmark index by 2.9 per cent.

“2022 was a very turbulent year in several respects. Both equities and fixed-income assets fell in value, partly due to higher interest rate levels. However, AP2’s portfolio showed resilience and reversed by a relatively moderate -6.7 per cent compared with OMX Stockholm, which declined by approximately -13 per cent during the same period, while global indices such as MSCI World (excluding currency effects) fell by approximately -16 per cent. Our non-listed assets performed better than our listed assets, which was also in line with our expectations,” says Eva Halvarsson, CEO of Andra AP-fonden.

“Over time, we’ve built our portfolio for situations like the one that arose in 2022. We’ve placed great value on spreading the risks as far as possible between different types of asset classes and markets, between listed and non-listed assets and between different management models. Our assessment is that, over time, this creates a good and stable return, in line with our long-term mission,” says Eva Halvarsson.

“In the past ten years, AP2 has generated a return of 104.8 per cent, equivalent to an average annual return of 7.4 per cent. Adjusted for inflation, this corresponds to a real annual return of 5.0 per cent,” says Eva Halvarsson.

“Sustainability issues continue to be part of our DNA. For example, during the past year we’ve developed processes for how we can understand and measure the impact of our investments on people and the environment. We’ve also taken further steps regarding our timberland investments by defining ten criteria to be fulfilled, for us to consider them sustainable. The criteria include biodiversity, which is our latest prioritised focus area within sustainability,” says Eva Halvarsson.

Key ratios31 Dec 202231 Dec 2021
Fund assets under management carried forward, SEK billion407.1441.0
Result for the year, SEK billion-29.262.3
Net payments to the national pension system, SEK billion-4.7-7.5
Fund assets under management brought forward, SEK billion441.0386.2
   
Asset management costs: operating expenses, %0.060.06
Asset management costs: commission expenses, %0.050.05
Total asset management costs, %0.110.11
   
Return after costs, %-6.716.3
Real return after costs, %-16.912.0
Annualised return after costs, 5 years, %5.28.5
Annualised return after costs, 10 years, %7.49.5
Real annualised return after costs, 10 years, %5.08.3

The English versions of AP2’s Annual Report 2022, the Sustainability and TCFD reports will be available at www.ap2.se from mid March.

For further information please contact:
Eva Halvarsson, Andra AP-fonden’s CEO, tel. (+46) (0)31 704 29 00 or
Ulrika Danielson, Head of Communications and Corporate Governance, tel. +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 covers 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

Andra AP-fonden publishes the 2022 Sustainability Report – expanding its focus areas within sustainability

Andra AP-fonden (AP2) continued to develop its sustainability work in 2022. This took place within all of the now five focus areas prioritised by the Fund. Review and revision of the Fund’s sustainability policy was a key activity during the year. Andra AP-fonden has also developed a new method, in six parts, of how the Fund’s sustainability work is conducted through responsible investments and responsible ownership.

“Review of our sustainability policy resulted in a decision to add another focus area, biodiversity, to the four previous focus areas. We also decided to expand the diversity area to include equity and inclusion,” says Eva Halvarsson, Andra AP-fonden’s CEO.

”Biodiversity – diversity within species and between species and ecosystems – is diminishing more rapidly than ever before in the history of humankind, with extensive consequences for the environment, people and the economy. AP2 has defined a long-term goal for its biodiversity work, which is to contribute to a net positive impact on nature by 2030 at the latest,” says Eva Halvarsson.

“The total carbon emissions for the Fund’s equity portfolios are continuing to decrease and declined by 10 per cent in 2022 compared with the previous year. From 2019, we’ve reduced our total carbon emissions for the listed equity portfolio by around 37 per cent,” says Eva Halvarsson.

“During the year, we drew up ten criteria that the Fund’s timberland investments must fulfil in order to be classified as a sustainability investment. The ten criteria mean, among other things, that managers of timberland assets must have a comprehensive and externally published policy for responsible investments, that timberland assets must be managed in a sustainable way that is verified by a third party under a certification scheme, and that all managers of timberland assets must integrate TCFD (Task Force on Climate-Related Financial Disclosures) recommendations into their reporting,” says Eva Halvarsson.

“Based on the UN’s Sustainable Development Goals, during the year we also evaluated how the Fund can understand and measure the impacts of our investments on the environment and people. The aim of the evaluation is to be able to implement targeted sustainability investments in a way that allows the Fund to set goals for, measure and follow up the expected positive impact of these investments. Another aim is to understand and be able to manage impact risks and opportunities across the entire listed portfolio,” says Eva Halvarsson.

The English versions of AP2’s Sustainability and TCFD Reports will be available at www.ap2.se from mid March.

For further information please contact:
Eva Halvarsson, Andra AP-fonden’s CEO, tel. +46 (0)31 704 29 00 or
Ulrika Danielson, Head of Communications and Corporate Governance, tel. +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 covers 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

AP Funds’ Council on Ethics to drive positive change even more effectively

The AP Funds’ Council on Ethics is expanding in response to an audit conducted during the year. The Council on Ethics has decided to recruit an executive director whose duties will include establishing an administrative office to continue to drive positive change in companies in which the AP Funds have holdings. 

Since its inception in 2007, the Council on Ethics of the AP Funds, a collaboration between AP1, AP2, AP3 and AP4, has built up a strong position both nationally and internationally and today plays a key role in driving positive change, primarily in foreign companies in which the Swedish AP Funds are shareholders, through dialogue and engagement.

At the same time, sustainability issues have been increasingly integrated into and become a major focus of the management strategies and investment processes of the respective AP funds. Against this background, the AP Funds have now jointly reviewed their mission and strategy to ensure that the Council on Ethics continues to be a key partner that is integral to the coordinated sustainability efforts of the AP Funds. 

As part of this initiative, the Council on Ethics has clarified its purpose and set long-term objectives. The Council on Ethics will work to ensure that the AP Funds continue to serve as global role models on sustainability issues. The Council on Ethics will also support the AP Funds in complex and material sustainability issues in order to achieve the objectives that the AP Funds set for themselves.

Previously, screening of the AP Funds’ holdings in listed foreign equities has been carried out twice a year. This initiative will now be extended to cover business loans. The purpose of the screening is to discover whether the holdings can be associated with violations of international conventions ratified by the Riksdag (the Swedish parliament).

In order to implement the new strategy, the Council on Ethics organisation has also been reviewed. It will consist of a board of directors with one member from each Fund appointed by the respective CEO. The Council on Ethics administrative office will be strengthened with the addition of three new positions: an executive director for the AP Funds’ Council on Ethics and two sustainability analysts.

Kristin Magnusson Bernard, CEO AP1, Eva Halvarsson, CEO AP2, Staffan Hansén, CEO AP3 and Niklas Ekvall, CEO AP4, issued the following joint statement:

“The First, Second, Third and Fourth AP Fund work together on sustainability to strengthen the AP Funds as exemplary managers and responsible owners. Developments within and views regarding sustainability have rapidly evolved in recent years, placing increasing demands on our own sustainability work. It is therefore important for us to be proactive and further develop the Council on Ethics so that the good work being done can continue to make progress. The Council on Ethics is a very important collaborative body for the AP Funds, enabling resource-efficient management of potential sustainability risks and thereby also achieving better results for the income pension scheme both today and in the future.

For more information:

Magdalena Håkansson, Chairman of the AP Funds Council on Ethics: Magdalena.hakansson@ap1.se
Sara Christensen, Head of Communications, AP1: sara.christensen@ap1.se +46 (0)70-968 1250
Ulrika Danielson, Head of Communications AP2: ulrika.danielson@ap2.se +46 (0)70-950 1613
Lil Larås Lindgren, Head of Communications AP3: lil.lindgren@ap3.se +46 (0)70-951 7223
Karoline Hammar, Head of Communications AP4: karoline.hammar@ap4.se +46 (0)70-603 4553

Council on Ethics of the AP Funds

The AP Funds’ Council on Ethics is a collaboration between AP1, AP2, AP3 and AP4 on sustainability issues with the aim of strengthening the AP Funds as exemplary managers and responsible owners, based on a strong foundation of trust and a solid reputation. The aim of the collaborative effort is to achieve a positive impact on portfolio companies and their value chains from an economic, environmental and social perspective. Collaboration within the Council on Ethics has a strong position both nationally and internationally and today plays a key role in driving positive change in foreign companies in which the Swedish AP Funds are shareholders through dialogue and engagement.

The Council on Ethics works both proactively and reactively globally with companies in the portfolios held by the AP Funds. The point of departure is that over time, well-managed and responsible companies provide higher returns at lower risk. The aim of the Council on Ethics is for companies and sectors to use a structured, transparent and systematic approach to working with sustainability.
Read more at www.etikrådet.se

AP2’s broad portfolio mitigated the impact of the turbulent markets

Andra AP-fonden (AP2) reported a total return of -6.2 per cent, after costs, for the first half year of 2022. The result amounted to SEK -27.3 billion and the Fund’s assets amounted to SEK 411.7 billion at the first half of 2022. During the period, SEK 2 billion was transferred to the pension system.

The first six months of 2022 was among the most turbulent ever for the financial markets and the real economy. Russia’s invasion of Ukraine is primarily a humanitarian disaster but has also affected energy, food and commodity prices. Inflation has risen to levels not seen in decades and central banks have tightened much more than previously expected. As a result, both equities and bonds have recorded a sharply negative return during the half year.

 “Primarily, it is listed asset classes that were negatively affected during the period. However, the Fund’s broad portfolio has mitigated the impact of the turbulent markets. The Fund’s total return amounted to -6.2 per cent, compared with OMX Stockholm, which during the same period decreased by about 28 per cent and global indices such as MSCI World (excl. currency effects) decreased by about 18 per cent,” says Eva Halvarsson, CEO of AP2.

“It is positive that our alternative investments, which include unlisted real estate, private equity funds and sustainable infrastructure, generated a return of as much as 10 per cent in these turbulent times,” says Eva Halvarsson.

“AP2’s return since it was launched exceeds the Fund’s expected long-term return. Over the past ten years, the Fund’s return has averaged 8.2 per cent,” says Eva Halvarsson.

Key ratiosJan.-June 2022Jan.-June 2021Jan.-Dec. 2021
Fund capital carried forward, SEK billion411.7421.2441.0
Net result for the period, SEK billion-27.339.262.3
Net outflows to the national pension system, SEK billion-2.0-4.2-7.5
Fund capital brought forward, SEK billion441.0386.2386.2
    
Asset management costs: operating expenses, %0.060.060.06
Asset management costs: commission expenses, %0.050.050.05
Total asset management costs, %0.110.110.11
    
Return after costs, %-6.210.216.3
Real return after costs, %-9.79.612.0
Annualised return after costs, 5 years, %6.18.78.5
Annualised return after costs, 10 years, %8.28.59.5
Real annualised return after costs, 10 years, %6.57.58.3

Read the full interim report (pdf) on the Fund’s website www.ap2.se

AP2’s sustainability work during the first half of 2022 is described in a separate published report at www.ap2.se                   

For further information please contact:

Eva Halvarsson, AP2’s CEO, tel. no. (+46) (0)31 704 29 00 or

Ulrika Danielson, Head of Corporate Communications, tel. no. (+46) (0)709 50 16 13.

AP2 publishes its sustainability report for the first half of 2022

The first half of 2022 has been characterized by very turbulent financial markets. Despite this, the Fund has continued to develop its work as a responsible investor and responsible owner. Strong focus has been on how the Fund can contribute to a low-carbon economy.

AP2 publishes a separate half-year report on the Fund’s sustainability work. The reason is that the Fund strives to be as transparent as possible and that a lot is happening in the area of sustainability. The report presents the work based on the Fund’s four focus areas within sustainability: climate, corporate governance, diversity and human rights. The report also includes a section on the Fund’s work on impact.

Creating a low-carbon society requires very substantial investments. AP2 has investments that support the transition in different asset classes.

“One area that requires major investments is sustainable infrastructure, as energy and transport systems need to undergo a rapid transition, from fossil fuels to renewable sources. In 2022, the Fund will further increase its allocation to sustainable infrastructure. We have made a total of seven investments, the most recent of which was during the first half of 2022,” says Eva Halvarsson, CEO of Andra AP-fonden.

“The Fund also believes that sustainable forestry is important for achieving net zero emissions and has therefore decided to define criteria that an investment in timberland must meet in order to be defined as a climate investment,” says Eva Halvarsson.

“Over the past year, we have evaluated how we can understand and measure the impact of our investments – the impact that the investments have on the environment and people. During the spring, we conducted an analysis of the entire listed portfolio based on the impact on the UN’s Sustainable Development Goals. Our ambition is to better identify and manage impact risks and opportunities,” says Eva Halvarsson.

Significant events during the first half-year:

  •  The Fund has continued to invest in sustainable infrastructure and during the first half of 2022, additional investments were made.
  • Over the past year, AP2 has evaluated how the Fund can understand and measure the impact of its investments – the impact that the investments have on the environment and people – with two main purposes. One purpose is to make targeted sustainability investments in such a way that the Fund can target, measure and follow up the expected positive impact of these investments. The second is to understand and be able to manage impact risks and opportunities throughout the listed portfolio.
  • A review of the listed portfolio has been carried out, which, among other things, has identified companies that have impact risks and opportunities from a climate perspective. UN’s Sustainable Development Goal 7 (Sustainable energies) and 13 (Fighting climate change) are two selected goals in the climate area where the Fund will engage in impact work by following up companies with high risk within the respective sustainability goals.
  • AP2 has developed ten criteria that the Fund’s forest investments must meet in order to be classified as sustainability investments.
  • During the first half of 2022, AP2 voted at 999 foreign and 109 Swedish general meetings.

Read the entire AP2 Sustainability Report for the first half of 2022 on the Fund’s website www.ap2.se

For further information please contact:

Eva Halvarsson, AP2’s CEO, tel. no. (+46) (0)31 704 29 00, or
Ulrika Danielson, Head of Corporate Communications, tel. no. (+46) (0)709 50 16 13.

AP2 has published the Female Representation Index for 20 years – During 2022 the proportion of women on boards continues to increase, now amounting to 35.4 percent

Andra AP-fonden (AP2) has for 20 years measured the proportion of women on boards and in executive management teams and published AP2’s Female Representation Index. The Index for 2022 shows that the proportion of women on the boards of companies listed on NASDAQ Stockholm continue to increase and is now 35,4 (34.5) percent. This is the highest level measured since the survey started in 2002. Compared with the relatively small changes that have been in recent years, the increase is relatively large, as the share of women has grown by almost one percentage point.

The proportion of women in executive management teams in listed companies also continues to increase and this year’s increase, from 26.0 to 27.2 per cent, is the largest measured in percentage points. Over time, the trend for women in executive positions has shown much greater stability compared to the trend for boards, particularly in the last decade. However, the long-term trend is also clearly positive with regard to boards of directors.

Despite the increase in the proportion of female board members, the proportion of chairwomen of the board remains largely unchanged with 30 chairwomen in 2022 (up from 29 in the last two years). The number of women who are CEOs this year remains at 43.

“I am pleased that our Female’s Index shows that the proportion of women on boards and management team continues to increase. It shows that neither the companies nor we owners have settled down but continue to work to create a greater diversity,” says Eva Halvarsson, CEO of AP2.

“The proportion of women on nomination committees increases sharply to 22 per cent from last year’s 16.3. It is interesting to note once again that nominating committees with women correlate favourably with boards that have a higher proportion of women. Boards without nominating committees have a lower proportion of female board members than other companies,” she says.

The proportion of women on the boards of all listed companies, if the CEO is excluded from the board, amounts to 36.3 per cent. On the boards of primary listed large-cap companies, the proportion of women amounts to 40.4 (40.7) percent if the CEO is excluded from the board.

Of the 356 companies in the survey, 296 have at least 25 per cent women on the board (83.1), which is an increase of 3.2 percentage points from 79.9 last year. The share has increased from 90.5 to 93.2 per cent in large cap (+2.7%) and in small cap the increase is from 63.4 to 65.8 per cent (+2.4%). Mid cap, on the other hand, has declined by 0.8 percentage points.

Female board members have, on average, more board assignments than male directors, which could indicate a willingness on the part of companies to have more female directors, but that the number of women considered to be available and suitable board candidates constitutes a bottleneck. The pattern that women have more board assignments than men is unchanged from previous years. It should also be mentioned that the age difference between newly elected men and women has basically blurred this year from the fact that women were previously younger.

Background to AP2’s Female Representation Index
AP2 has since 2003 conducted an annual survey with ISS Nordic Investor Services to determine the proportion of women at middle management level, in executive positions and on the boards of listed companies. The survey for 2022 covered 356 primary and secondary listed companies on NASDAQ OMX Stockholm. In addition, the survey records the proportion of women who have graduated from study programmes that constitute the traditional recruitment base for management groups and boards.

For more information, please contact:
Eva Halvarsson, CEO of AP2, phone +46 (0)31 704 29 00
Ulrika Danielson, Head of Communications, phone +46 (0)709 50 16 13

www.ap2.se/en/

The figures refer to the 356 companies included in the survey listed on NASDAQ OMX Stockholm, unless otherwise specified.

AP1, AP2, AP3 and AP4 post record profits of SEK 316 billion in 2021

Together, the AP Funds (AP1-AP4) achieved their best result ever of SEK 316 billion. This significantly contributes to the stability of the income pension system and the mission to be of the greatest possible benefit to current and future pensioners.

  • The average return for the year was 19.3 per cent after expenses.
  • The AP Funds’ average return over the past five years and the past ten years respectively is 10.5 and 10.7 per cent per year, compared with the performance of the income index of 2.8 and 2.7 per cent per year over the corresponding time periods. The income index is used to calculate pensions and pension entitlements in the income pension system. When the AP Funds’ return exceeds the performance of the income index, the AP Funds contribute to the strength of the pension system.
  • At the end of 2021, the AP Funds’ total assets under management amounted to SEK 1 937 billion, corresponding to an increase of SEK 285 billion compared with the end of 2020.
  • In 2021, the AP Funds paid out SEK 30 billion to cover shortfalls in the pension system. Since their start in 2001, the AP Funds have made a net contribution to the pension system of SEK 233 billion. At the same time, the Funds’ return has contributed to the financial strength of the pension system and the AP Funds’ share of the pension system now accounts for almost 18 per cent of pension assets, compared with 10 per cent in 2001.
  • In accordance with the Paris Agreement, the AP Funds continued to work on climate change adapting of their portfolios during the year. In 2021, carbon emissions in the portfolios were reduced by a further 14 per cent. Of the year’s reduction in emissions, 5 percentage points were due to the portfolio companies reducing their emissions and 8 percentage points were due to the AP Funds’ portfolio adjustments. 
  • During the year, the Council on Ethics continued its important advocacy work in around 90 company dialogues with a focus on human rights, corporate governance and climate. As sustainability is increasingly being integrated into the Funds’ management strategies and objectives, at the end of 2021 a decision was taken to review the Council on Ethics’ mission and strategy.

Kristin Magnusson Bernard, CEO of AP1, Eva Halvarsson, CEO of AP2, Kerstin Hessius, CEO of AP3 and Niklas Ekvall, CEO of AP4, jointly commented:

“Our joint results for 2021 are our best ever and amount to as much as SEK 316 billion. We started in 2001 with assets under management of SEK 536 billion, which had grown to SEK 1 937 billion by the end of 2021. The AP Funds deliver long-term returns that have significantly exceeded the performance of the income index over time, which means that the AP Funds have contributed strongly to the stability of the pension system. From a 10-year perspective, the return has been very high, averaging 10.7 per cent per year. Internationally, we are considered to be a role model in sustainability and we have continued to develop this important work through both responsible investments and responsible ownership.”

For more information, see the Funds’ annual reports and sustainability reports at www.ap1.se, www.ap2.se, www.ap3.se and www.ap4.se

For more information, contact:

Sara Christensen, Head of Communications, AP1, sara.christensen@ap1.se

Ulrika Danielson, Head of Communications, AP2, ulrika.danielson@ap2.se

Lil Larås Lindgren, Head of Communications, AP3, lil.lindgren@ap3.se

Karoline Hammar, Head of Communications, AP4, karoline.hammar@ap4.se

The AP Funds (AP1-AP4)

The AP Funds have a mandate from the Swedish Parliament to manage the buffer capital in the national pension system on behalf of the Swedish population for the benefit of current and future pensioners. The AP Funds’ asset management shall be conducted in an exemplary manner through responsible investments and responsible ownership. Particular emphasis must be placed on how to promote sustainable development without compromising on the overarching goal of being of the greatest possible benefit to the pension system. The AP Funds have the same mission, but different management strategies and are governed by the Act on National Pension Insurance Funds (2000:192).