For some time, Andra AP-fonden has worked to integrate sustainability in its asset management, among other things with focus on climate change, which plays a central role in sustainable development, and also for future economic development and returns on financial assets. The Fund took a major step towards a carbon-neutral world by 2050 at the latest through the internal development and implementation of multi-factor indices for global equities and corporate bonds, in accordance with the criteria for the EU Paris-Aligned Benchmark.

Political measures are basically required to keep the global temperature increase in line with the requirements of the Paris Agreement. However, this does not prevent institutional investors such as AP2 from having an important role to play.

AP2 is developing its portfolio in line with the Paris Agreement, with the aim of a net zero emission portfolio by 2045. In 2022, AP2 worked to include the asset class of Swedish equities in a PAB index. The indices for the foreign government bonds asset class were also adapted during the year to enable the Fund to invest in countries/states with lower emissions, as an element of reducing the Fund’s exposure to transition risks.

Contributing to the transition

AP2 aims to contribute to the transition towards a society in line with the Paris Agreement. The Fund does this through:

• Investments in sustainable strategies
• Dialogues with companies
• Dialogues with decision-makers.