AP2 has identified five focus areas within which the Fund’s sustainability work is concentrated. The choice of focus areas is based on materiality, according to the following parameters:
- Potential impact on expected return and risk in the Fund’s portfolio.
- Relevance within the Fund’s investment universe and potential for integration in the investments.
- The positive or negative impact that AP2 exerts through its investments, such as through the portfolio companies’ impact on people and the environment.
- The importance of the area to the Fund’s stakeholders.
The Fund’s choice of focus areas entails the long-term commitment considered necessary to achieve results. Within each area, the Fund develops a strategy based on a six-part method, with a defined long-term goal and/or commitment as a benchmark.