2016 was an eventful year for the Second AP Fund (AP2) in terms of sustainability. This was the result of a long-term and structured commitment, in line with the Fund’s primary mandate, to make sustainability integral to all activities.
Today, AP2 publishes its Sustainability & Corporate Governance Report for 2016. The Fund are determined to integrate sustainability throughout its operations, in our day-to-day activities as well as in our longer-term strategic planning. The Fund’s sustainability activities focus primarily on four priority areas that are considered essential to achieving a better long-term return; climate, corporate governance, diversity and transparency/reporting.
“For AP2, sustainability issues are intimately linked with the requirement to generate high return for Sweden’s pensioners. We are convinced that increased knowledge of these issues provides more comprehensive decision data, leading to better investment decisions. Consequently, sustainability is natural and important in all our activities and to all staff, essential to ensuring the best possible investments,” states Eva Halvarsson, CEO of the Second AP Fund.
Climate is one of the Fund’s focus areas, which means that these issues shall, where relevant, be integral to the analytical and decision processes employed for all asset classes. The ambition is to develop the portfolio in line with the two-degree target. The initial
focus of the Fund’s climate efforts will be to reduce the climate-related financial risks and contribute to a positive change.
“The opportunities consist of an ability to positively contribute to climate change, based on our mandate. By investing in sustainable strategies, such as green bonds, we help to limit climate change. By engaging in dialogue with companies and decision-makers
about sustainability, we are an important catalyst for change,” says Eva Halvarsson.
“One of our most important actions concerning sustainability during 2016 was to integrate ESG factors into the quantitative management of asset class global equities, which accounts for approximately SEK 90 billion of Fund capital. During 2016, our board also decided to include green bonds in our strategic portfolio, being the next step towards making sustainability concerns integral to the portfolio management process. During 2017, we shall be focusing still greater attention on opportunities within the field of sustainability. We must also prioritize those actions that best satisfy our mandated commitment to work for the good of Sweden’s pensioners,” says Eva Halvarsson.
The Second AP Fund Sustainability & Corporate Governance Report 2016, will be published in English in beginning of March, www.ap2.se.
For further details, please contact Eva Halvarsson, CEO of the Second Swedish National Pension Fund, on +46 31-704 29 00, or Ulrika Danielson, Head of Corporate Communications, on +46 31 704 29 29.