Climate issues – and climate change in particular – present enormous risks, as well as opportunities, for long-term investors like AP2. Climate change is expected to have a major impact on long-term investment.
Climate is one of AP2’s focus areas, which means that climate issues are, where relevant, integrated in the analysis and decision-making processes for all asset classes. The ambition is to develop the portfolio in line with the Paris Agreement. Since 2017, the Fund described and assessed its climate work based on a new voluntary international framework called Task Force on Climate-related Financial Disclosures (TCFD). The Fund also works to reduce its direct impact on the climate through its in-house environmental programme.
Since 2013, AP2 is engaged in an ongoing project of fossil energy and financially-related climate risks and, which among other things has resulted in a decision to no longer be invested in a variety of power utilities and fossil-fuel production companies.
AP2 measures the portfolio’s carbon footprint. The first time this was done was as early as 2009, and from 2014 and forward the Fund publish this annually. Read more on page Carbon footprint and in the Fund’s Annual and Sustainability reports.