Andra AP-fonden’s (AP2’s) Female Representation Index for 2021 shows that the proportion of women on the boards of companies listed on NASDAQ Stockholm is once again increasing and is now 34.5 (33.7) percent. The proportion of women in executive management teams in listed companies continues to increase and this year’s increase, from 24.3 to 26.0 per cent, is the largest measured in percentage points since the studies began in 2002. 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 female chairmen of the board remains unchanged at 8.6 per cent, which is lower than the record figure of 10.2 per cent in 2019. The proportion of women who are CEOs has risen by 2.3 percentage points and is now at 12.7 percent.

“After showing a slight decline in the proportion of female board members last year, we are delighted to see our Female Representation Index resume its upward trajectory since 2013 and that the proportion of women in executive positions continues to increase steadily. This shows that Swedish owners and companies are diligently working towards a more even gender distribution. However, we need to be better at diversity in all its dimensions and I think that this is an issue we need to discuss in a wider context in nominating committees, boards, management teams and in society at large,” says Eva Halvarsson, CEO of AP2.

“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.

On the boards of primary-listed Large-cap companies, excluding the CEO, the proportion of women is 40.7 (40.3) percent.

Of the 339 companies in the survey, 271 have at least 25 percent women on the board (79.9 per cent), an increase on the previous year’s figure of 76.5 percent. When broken down into market capitalisation groups, more than 9 out of 10 large cap companies reach the level.

Newly elected women on boards are younger than their male counterparts and female board members have on average a slightly higher number of board assignments than male members. This pattern is unchanged from previous years, although the age difference between newly elected men and women is greater this year and that both men and women on average have fewer board assignments than before.

Background to AP2’s Female Representation Index
AP2 has since 2003 conducted an annual survey with 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 2021 covered 339 primary and secondary listed companies on NASDAQ 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 all companies listed on NASDAQ Stockholm, unless otherwise specified.

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

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

Thanks to a strong end to 2020, full-year earnings reached SEK 12.8 billion. The average returns of Andra AP-fonden (AP2) in the last five and ten years have been 7.3 and 7.7 per cent respectively. Growth during the year means that the Fund’s return once again exceeds the Fund’s long-term return assumption.

“In many ways, 2020 was a very special year, strongly marked by the COVID-19 pandemic. Yet in spite of everything that has been happening around the world, we have managed to deliver much of what we had decided to do. We have taken key steps to further develop our asset management approach, which we hope and believe will contribute positively to returns and to a more sustainable society,” says Eva Halvarsson, CEO of AP2.

“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.

“Our SEK 12.8 billion profit for the year is a result of developments in the stock market, particularly the Swedish, and also reflects a good return on the Fund’s investments in private equity funds, Chinese equities and real estate. The Fund’s Swedish and Chinese equity portfolios generated a total return of 15.9 per cent and 33.2 per cent respectively,” says Eva Halvarsson.

“The upward trajectory of the global stock market has largely been fuelled by growth equities in the technology sector. This has adversely affected the Fund’s equity portfolios, which avoid concentrating excessive holdings in large companies and instead overweight equities with low valuations. We expect this to generate a better return in relation to risk in the long run. However, it has been negative for us this year,” says Eva Halvarsson.

The English versions of AP2’s Annual Report 2020, the Sustainability and TCFD reports 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

Andra AP-fonden (AP2) has aligned its internal indices and portfolios for foreign equities and corporate bonds to meet the 1.5 degree target of the Paris Agreement. This means, among other things, withdrawal of investment from companies that generate revenues from selling fossil fuels. This also reduces the climate risk from the Fund’s global investments and further reduces its carbon footprint.

During the autumn, AP2 has adjusted the holdings of global equities and corporate bonds it manages internally to ensure they are consistent with the Paris Aligned Benchmark (PAB), but it has not compromised the return and risk characteristics of the indices.

“As far as we know, this makes us unique because it includes both corporate bonds and equities worth approximately SEK 200 billion, which is half of our total portfolio. Our ambition is eventually to align other parts of our portfolio with the PAB, too”, says Eva Halvarsson, CEO of AP2.

The fact that AP2 is managing its holdings in keeping with the PAB means that the Fund does not invest in companies that generate more than 1 per cent of their turnover from coal, more than 10 per cent of their turnover from oil, and more than 50 per cent of their turnover from gas. In principle, this excludes the entire energy sector. Nor does the Fund invest in utility companies that receive more than 50 per cent of their revenues from fossil fuels. In total, approximately 250 companies will no longer be included in the Fund’s portfolio.

“Actually, we are moving beyond the PAB requirement for halving the carbon footprint in the first year because we are already reducing the carbon footprint of our global corporate bonds by about 75 per cent and that of our global equities by about 70 per cent, and we aim to reach net zero emissions by 2045”, says Eva Halvarsson.

In 2013, AP2 began analysing financial climate risks for fossil energy companies moving on to analyse companies generating electricity from coal. Because of financial climate risks, AP2 has previously withdrawn investment from shares and corporate bonds in a total of 80 companies. The Fund decided as early as 2016 to develop its portfolio in keeping with the Paris Agreement and set a target of net zero emissions by 2045 for its portfolio.

This alignment with the PAB is in step with climate regulations developed by the EU as part of its action plan to finance sustainable growth. Said rules, which are intended for public index providers who wish to market their indices as the EU climate index, provide for two levels of climate ambition: The EU Climate Transition Benchmark, which is somewhat less ambitious than the EU Paris Aligned Benchmark (PAB). Since AP2 is keen to align its portfolio with the Paris Agreement, the Fund has opted for the Paris Aligned Benchmark regulations.

The criteria for PAB are based on the IPCC’s conclusions and are intended to support the broad societal change needed to achieve the Paris Agreement’s climate goals. This means pulling investment out of certain companies, primarily those involved with fossil fuel operations, while ensuring that we continue to focus on industries that are important for the transition to a low carbon economy.

“I think that AP2 has taken a huge step towards a net zero world with the first asset owner in-house implementation of Paris-Aligned benchmark (PAB) indices, for both global equities and corporate bonds. The indices follow an aggressive path with the exclusion of fossil fuels, while at the same time being responsible in other social and sustainable aspects. Hopefully this can also inspire other asset owners around the world”, says Andreas Hoepner, Professor of Operational Risk, Banking and Finance at University College Dublin’s Smurfit Graduate Business School and a member of the EU’s Platform on Sustainable Finance and formerly of the EU’s Technical Expert Group.

For more information:

www.ap2.se

EU climate benchmarks and benchmarks’ ESG disclosures | European Commission (europa.eu)

Presentation on climate benchmarks and benchmarks’ ESG disclosures (europa.eu)

For more information, please contact:

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

Tomas Morsing, Head of R&D at AP2, T: +46 (0)31 704 29 00

Ulrika Danielson, Head of Communications and Corporate Governance at AP2, +46 (0)709 50 16 13

AP2 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 357.9 billion (30 June 2020), within essentially all asset classes and across the entire world. We are leading specialists on the Swedish pension system, and we strive to be a world-class asset manager. We are a global leader when it comes to integrating sustainability into our investments for the benefit of the pension system. The fund is a long-term, responsible, asset management company. www.ap2.se/en/

During the first half-year 2020 AP2 continued to work intensively to integrate sustainability into its management activities. The Fund approaches the issue of sustainability based on the conviction that sustainability results in better management performance, and thus in a better income pension system and a better deal for pensioners.

AP2 has decided to publish a separate report on the Fund’s sustainability work for the first half of 2020. The reason for this is that the Fund strives to be as transparent as possible and there is constantly a great deal going on in the field of sustainability. The report presents the work based on the Fund’s four sustainability focus areas: climate, corporate governance, diversity and human rights.

“During the first half of 2020, the Fund’s sustainability work was impacted to a certain extent by COVID-19, which mainly affected attendance at general meetings, but also proposals for dividends and board fees,” says Eva Halvarsson, CEO of AP2.

“One area with major need for investment is sustainable infrastructure, as energy and transport systems need to implement a rapid transition from fossil-based to renewable resources. At the end of 2019, we decided to invest in sustainable infrastructure, that is, assets that contribute to sustainable development in line with the Paris Agreement. Two investments were carried out in the first half of 2020,” says Eva Halvarsson.

Key events during the half-year

• In May, AP2, together with 176 other investors, signed an open letter to EU leaders with recommendations aimed at supporting a sustainable economic recovery after COVID-19. The recommendations are that the EU must deliver a recovery that prioritises climate action needed for achieving the Paris Agreement’s target of net zero emissions by 2050.
• At the end of June, AP2 and just over 30 other investors wrote an open letter to the Brazilian Embassies in the investors’ respective countries because of concerns about the increasing deforestation of the Amazon and its negative effects on the climate, biodiversity and the rights of indigenous people. The initiative has attracted a lot of attention, not least in Brazil. In July, investors, including AP2, held meetings with both representatives of the Brazilian government and the Vice President, and with the Speaker and representatives of Congress. The initiative is led by Storebrand.
• The equity portfolio’s carbon footprint continues to decrease, both in absolute and relative terms. The reduction in total carbon emissions is mainly due to reductions in emerging markets. It is positive that both the portfolio and the companies have reduced their carbon footprint. Portfolio-weighted carbon intensity fell by no less than 15 per cent. Of the decrease, 11 percentage points were attributable to changes in holdings and four percentage points to changes in companies.
• This year, the Fund decided to increase its voting power in global companies from the previous total of 750 to 1,000 companies. In the first half of 2020, AP2 voted at 844 foreign general meetings. AP2 also voted in 92 Swedish general meetings during the first half-year 2020.
• In spring 2020, the Fund has worked on clarifying its preference and governance for its human rights work in order to ensure a sustained focus on prioritised issues. The work has resulted in the revision of AP2’s policy for human rights, the preparation of a strategy and the adoption of a long-term goal up to and including 2025.

The complete version of AP2’s Sustainability Report for the half-year is available at www.ap2.se.

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.

AP2 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 357.9 billion (30 June 2020), and cover essentially all asset classes across the entire world. We are leading specialists in the Swedish pension system, and we strive to be a world-class asset manager. We are a global leader when it comes to integrating sustainability into 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 (AP2) reported a total return of -5.1 per cent, after costs, for the first half of 2020. The net result was SEK -19.3 billion, while the Fund’s assets totalled SEK 357.9 billion at the end of the first half of 2020. Relative to the benchmark index, the return was -0.1 per cent, excluding alternative investments and costs.

– The global outbreak of COVID-19 has impacted very strongly on the world’s securities markets trend and thereby the Fund’s portfolio value, says Eva Halvarsson, CEO of AP2.

– By the end of the first half of the year, financial markets had turned upwards and most economies had begun to recover. The stock market upturn was largely driven by emerging equities in the technology sector. This has adversely affected the Fund’s equity portfolios, which avoid concentrating excessive holdings in large companies, and instead over-weighting equities with a low valuation, says Eva Halvarsson.

– AP2’s return exceeds the Fund’s long-term return assumption of 4.5 per cent annually. In the past ten years the Fund’s average annual real return has amounted to 6.6 per cent, says Eva Halvarsson.

– During the first half of the year allocations to private equity funds and foreign real estate were increased, which was financed by a reduction in the allocation to Swedish bonds. The allocation to Chinese A-shares was also increased. The Fund also switched to an index with a sustainability focus for bonds in local currency in emerging countries, says Eva Halvarsson.

The complete half-year report (pdf) is published on the Fund’s website at www.ap2.se. AP2’s sustainability work during the first half-year 2020 is published in a separate report at www.ap2.se

For further details, please contact:
Eva Halvarsson, CEO at AP2, on +46 31 704 29 00 or Ulrika Danielson, Head of Corporate Communications, on +46 709 50 16 13.

AP2 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 357.9 billion (30 June 2020), and cover essentially all asset classes across the entire world. We are leading specialists in the Swedish pension system, and we strive to be a world-class asset manager. We are a global leader when it comes to integrating sustainability into our investments, for the benefit of the pension system. The Fund is a long-term and responsible asset manager. www.ap2.se

AP2’s Female Representation Index for 2020 shows that the proportion of women represented on the boards of companies listed on Nasdaq Stockholm, for the first time since 2013, is down slightly and now amounts to 33.7 (34.0) percent. On the other hand, the proportion of women in executive positions, for the tenth consecutive year, increased and amounted to 24.3 (24.0) percent at the year’s survey. For the first time, more than 10 percent of listed companies’ CEOs are women.

“I hope that this is just one notch in the curve and that the upturn we have seen since 2013 regarding the proportion of woman on the boards continues. But it is also an alarm clock for all nomination committees that the work on diversity must continue to be actively prioritized. However, it is gratifying to see that the proportion of women in executive positions continues to increase steadily, since this is the main recruitment base for board members,” says Eva Halvarsson, CEO of AP2.

“It is interesting to once again note that the nominating committees with women correlate favourably with boards with a higher proportion of women, while boards without nominating committees have a lower proportion of female board members than other companies,” she says.

On the board of primary-listed Large-cap companies, the proportion of women is 40.3 (41.0) percent when the CEO is excluded from the board.

Of the 336 companies in the survey, 257 companies have at least 25 percent women on the board (76.5%). When it is broken down into market value groups, almost 9 out of 10 large cap companies reach the level.

Newly elected women on boards are younger than their male counterparts and female board members have on average a slightly higher number of board assignments than male members.

Background to AP2’s Female Representation Index
AP2 has since 2003 conducted an annual survey with 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 2019 covered 332 primary and secondary listed companies on NASDAQ 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, Andra AP-fonden (AP2), phone +46 (0)31 704 29 00
Ulrika Danielson, Head of Communications & HR, phone +46 (0)709 50 16 13

www.ap2.se

The figures refer to all companies listed on NASDAQ Stockholm, unless otherwise specified.

AP2 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 381.3 billion (31 December 2019), and cover essentially all asset classes across the entire world. We are leading specialists on the Swedish pension system, and we strive to be a world-class asset manager. We are a global leader when it comes to integrating sustainability into our investments, for the benefit of the pension system. The Fund is a long-term, responsible, asset management company. www.ap2.se

The Council on Ethics of the Swedish National Pension (AP) Funds Annual Report 2019:
For more than 13 years, the AP Funds’ Council on Ethics has exercised influence on the AP Funds’ global portfolio of listed companies to improve their environmental, human rights and corporate governance work through engagement and dialogue. During 2019, the Council on Ethics’ efforts and involvement have focused on areas such as inadequate safety in managing mine waste, known as ‘tailings’. Other focus areas include money laundering, long-term environmental efforts in the oil industry, and deforestation in South America.

January 2019 saw the serious accident at Brumadinho in Brazil, when the tailings dam of mining company Vale burst, with devastating consequences. Shortly afterwards, the Church of England Pensions Board and the Council on Ethics jointly initiated a major project to make sure that mining companies take responsibility for their tailings dams. The project aims to audit and increase transparency around safety at all of the world’s tailings dams.

“It is too early yet to say whether the interventions driven by investors will suffice, but the response from investors and nations does suggest that they will do their best to get to the root of the problem. It will undoubtedly be difficult, but this will eventually lead to improved safety in the mining sector,” says John Howchin, Secretary General of the Council on Ethics of the AP Funds.

As part of the AP Funds’ overall commitment in the Climate Action 100+ project, the Council on Ethics has intensified its dialogue with Shell. Climate Action 100+ is a five-year, investor-driven initiative to systematically engage companies that have extensive emissions of greenhouse gases. Shell set a long-term goal of reducing carbon dioxide emissions in the products it sells. The target now is that net emissions from sold energy should decrease by around 20 per cent up to 2035, and should be zero by 2050.

With the aim of expanding collaboration, the Council on Ethics and the AP Funds organised a seminar involving the CEOs of four major banks, the Swedish Financial Supervisory Authority, the Swedish Economic Crime Authority and others. As independent external parties outside of the banking system, the Council on Ethics and the AP Funds are in a good position to encourage closer collaboration. Working alongside banks and government authorities, we will continue our efforts to curb economic crime.

Read more about the Council on Ethics’ company dialogues and other engagements in the 2019 Annual Report at www.etikradet.se

For further information, please contact:

John Howchin, Secretary General, Council on Ethics of the Swedish National Pension Funds, phone +46 (0)8-555 17 176 john.howchin@councilonethics.org

Christina Olivecrona, Chairman, Council on Ethics of the Swedish National Pension Funds, phone: +46 (0)31-704 29 00 christina.olivecrona@ap2.se

The Council on Ethics conducts its work based on the AP Funds’ assignment to create high long-term returns with low risk for current and future retirees, and on the common core value: to take a proactive approach to sustainable development, and to demand and act in the name of transparency and positive change. The Council on Ethics works proactively as well as reactively, engaging with the AP Funds’ global portfolio of companies. The starting point is that well-managed and responsible companies create higher long-term returns with lower risk. The aim of the Council is to ensure that companies and industries conduct their sustainability work in a systematic, structured and transparent way.

The 2019 result was AP2’s (Andra AP-fonden) highest ever and totalled SEK 53.0 billion. Looking at the last five and ten years, the Fund’s average return has been 7.4 and 8.4 per cent respectively. Developments during the reporting year have meant that the Fund’s return will once again exceed its long-term return commitment both in the short and in the long term.

“2019 was a year characterised by new investment rules, sustainability issues and the general global turbulence that has become the new normal. Despite the turbulence, many of the world’s financial markets experienced strong growth. The result for the year was our highest ever at SEK 53.0 billion. The return after expenses was 15.9 per cent, which is significantly higher than our long-term return expectation,” says Eva Halvarsson, CEO of AP2.

“All asset classes saw positive returns and global stock markets, above all, experienced positive development. The total return for the Fund’s Swedish share portfolio was 30.2 per cent while corresponding figures for the developed markets and emerging markets portfolios were 31.7 and 19.9 per cent respectively. The return on Chinese A-shares proved to be the Fund’s best-performing asset class, with an annual return of 52.6 per cent,” says Eva Halvarsson.

“Based on our mission we have, over the years, developed unique expertise on the analysis of pension system development and system needs going forward. This helps us construct that portfolio best suited to achieving our goal of creating maximum benefit for the pension system. In 2019 we added to this analysis further by including the risks posed by climate change to economic growth,” says Eva Halvarsson.

The English version of AP2’s Annual report and the separate Sustainability Report 2019 will be available at www.ap2.se from beginning of March.

For more information, please contact:

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

Ulrika Danielson, Head of Communications &Corporate Governance, +46 (0)709 50 16 13

AP2 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 381.3 billion (31 December 2019), and cover essentially all asset classes across the entire world. We are leading specialists on the Swedish pension system, and we strive to be a world-class asset manager. We are a global leader when it comes to integrating sustainability into our investments, for the benefit of the pension system. The Fund is a long-term, responsible, asset management company. www.ap2.se

AP2 continued to work intensively to integrate sustainability into its management activities in 2019. The Fund approaches the issue of sustainability based on the conviction that sustainability results in better management results, and thus in a better income pension system and a better deal for pensioners. AP2 has on several occasions acted as a pioneer, for instance when it comes to investment into green and social bonds, sustainability requirements in agreements entered into with private equity funds, divestments from fossil energy companies, reporting in accordance with TCFD and, most recently, in accordance with UNGPRF.

“One issue that has strongly characterised 2019 has been sustainability. Overall interest in sustainability issues is on the rise, in part as a result of the climate change focus being raised by Greta Thunberg, but also due to more frequent publication of research reports on climate issues. Equality and human rights are other matters increasingly at the forefront of discussions,” says Eva Halvarsson, CEO of AP2.

“For AP2, sustainability issues are closely linked with our mission to create high returns for Swedish pensioners. We have spent a long time developing the way that we work with sustainability, and this is something which strongly characterises our organisation. It is also something that we tend to earn recognition for on an international level. I hope that those stakeholders that take a great interest in — and express views on — how we run our business are also prepared to take the time to truly understand our mission, the considerations we need to balance and how the business de factor operates,” says Eva Halvarsson.

Key events during the year

• During the year, the Fund developed a new sustainability strategy as well as revised investment beliefs which highlight sustainability. The Fund has also developed a new corporate governance strategy.
• With the support of the changes to the legal rules for the AP Funds regarding exemplary fund management, the Fund divested from a total of about 60 tobacco companies and companies involved in the maintenance and modernisation of nuclear weapons systems in 2019.
• In 2019, AP2 included climate risk into the Fund’s overarching return assumptions, and this serves as the basis for strategic portfolio decisions.
• In 2019, AP2 increased the strategic weighting of green bonds from 1.0 to 3.0 per cent of the total portfolio.
• For the second year in a row, AP2 published a report in the month of February in accordance with the framework of the Task Force on Climate-related Financial Disclosures (TCFD). The TCFD report is included in this year’s sustainability report.
• Also in 2019, AP2 became one of the first investors in the world to publish a report on the Fund’s human rights work in accordance with the framework for the United Nation’s guiding principles.
• The UN Principles for Responsible Investment (PRI) have included AP2 in its Leaders’ Group 2019. This group includes capital owners that PRI identifies as leading when it comes to selecting external managers for listed equity and/or private equity. AP2 has been named a leader in both these categories.
• The carbon footprint of the Fund’s listed equity portfolio has shrunk by half in the space of two years.

The English version of AP2’s Sustainability Report 2019 will be available at www.ap2.se from beginning of 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.

AP2 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 381.3 billion (31 December 2019), and cover essentially all asset classes across the entire world. We are leading specialists on the Swedish pension system, and we strive to be a world-class asset manager. We are a global leader when it comes to integrating sustainability into our investments, for the benefit of the pension system. The Fund is a long-term, responsible, asset management company. www.ap2.se