Carbon footprint
AP2 began to analyse the equity portfolio’s carbon footprint in 2009. As of 2014, measurements have been taken annually. By collecting data from all the companies in the portfolio, based on the Fund’s stake in their respective companies, the holdings’ total emissions of carbon dioxide are calculated.
Carbon footprint of listed equity portfolio
| 2024 | 2023 | 2022 | 2021 | Base year 2019 | |
| Carbon emissions, Scope 1 and 2 (million tCO2e) | 0.3 | 0.4 | 0.6 | 0.7 | 0.9 |
| Change in the portfolio’s carbon emissions from the previous year (%) | -20.9 | -36.0 | -8.7 | -15.4 | |
| – of which the change related to changes in the portfolio’s holdings (% units) | -15.3 | -39.5 | -20.4 | -11.2 | |
| – of which the change related to changes in the companies’ emissions (% units) | -5.6 | 3.5 | 11.7 | -4.2 | |
| Carbon emissions, Scope 3 (million tCO2e) | 4.1 | 3.6 | 4.7 | 5.7 | 7.6 |
| Relative carbon emissions, Scope 1 and 2 (tCO2e/SEK million) | 2.6 | 4.5 | 7.4 | 6.3 | 11.6 |
| Portfolio-weighted carbon intensity (WACI), Scope 1 and 2 (tCO2e/SEK million) | 5.0 | 5.7 | 8.2 | 9.0 | 13.7 |
| Change in the portfolio’s carbon intensity from the previous year (%) | -11.1 | -30.4 | -9.0 | -24.7 | |
| – of which the change related to changes in the portfolio’s holdings (% units) | 6.8 | -28.9 | 5.7 | -4.1 | |
| – of which the change related to changes in the companies’ carbon intensity (% units) | -17.9 | -1.5 | -14.7 | -20.6 | |
| Mapped market value as a share of total Fund capital, % | 40 | ||||
| Portfolio-weighted carbon intensity (WACI), Scope 3 (tCO2e/SEK million) | 63.8 | 54.2 | 71.5 | 70.2 | 85.7 |
| Carbon emissions, Scope 1, 2 and 3 (million tCO2e) | 4.5 | 4.0 | 5.3 | 6.4 | 8.5 |
| Change in the portfolio’s total carbon emissions from the previous year (%) | 10.9 | -24.2 | -17.2 | 6.5 | |
| – of which the change related to changes in the portfolio’s holdings (% units) | 11.6 | -28.2 | -34.8 | 4.0 | |
| – of which the change related to changes in the companies’ emissions (% units) | -0,7 | 4.0 | 17.6 | 2.5 | |
| Portfolio-weighted carbon intensity (WACI), Scope 1, 2 and 3 (tCO2e/SEK million) | 57.3 | 48.9 | 65.3 | 65.3 | 79.2 |
| Change in the portfolio’s carbon intensity from the previous year (%) | 17.1 | -25.0 | -0.01 | -3.4 | |
| – of which the change related to changes in the portfolio’s holdings (% units) | 24.2 | -25.6 | -9.9 | 6.9 | |
| – of which the change related to changes in the companies’ carbon intensity (% units) | -7.2 | 0.6 | 9.9 | -10.3 |
Carbon footprint of the listed credit portfolio
| 2024 | 2023 | 2022 | 2021 | Base year 2019 | |
| Carbon emissions, Scope 1 and 2 (million tCO2e) | 0.1 | 0.1 | 0.2 | 0.2 | 0.3 |
| Carbon emissions, Scope 3 (million tCO2e) | 0.9 | 0.7 | 0.9 | 1.2 | 1.1 |
| Portfolio-weighted carbon intensity (WACI), Scope 1 and 2 (tCO2e/SEK million ) | 8.6 | 9.2 | 13.0 | 13.7 | 21.3 |
| Portfolio-weighted carbon intensity (WACI), Scope 3 (tCO2e/SEK million) | 67.1 | 50.7 | 42.8 | 59.0 | 66.7 |
| Carbon emissions, Scope 1, 2 and 3 (million tCO2e) | 1.0 | 0.8 | 1.1 | 1.4 | 1.4 |
| Portfolio-weighted carbon intensity (WACI), Scope 1, 2 and 3 (tCO2e/SEK million) | 75.7 | 4.5 | 7.4 | 6.3 | 88.0 |
| Portfolio-weighted carbon intensity (WACI), Scope 1, 2 and 3 (tCO2e/SEK million) | 9 |
Carbon emissions, Scope 1, 2 and 3. The sum of the owned share of the portfolio companies’ respective carbon emissions based on the enterprise value (Enterprise Value Including Cash, EVIC). Relative carbon emissions, Scope 1 and 2. The sum of the owned share of the portfolio companies’ respective carbon emissions in relation to the portfolio’s market value. Portfolio weighted carbon intensity (WACI), Scope 1, 2 and 3. The sum of the portfolio companies’ respective carbon intensity, i.e. a company’s carbon emissions in relation to its turnover, weighted based on the respective company’s share of the portfolio. The formulas for the above metrics are available on the Fund’s website. CO2e (carbon dioxide equivalent) is a unit of measurement that makes it possible to compare the climate impact of different greenhouse gases.
Since 2015, the AP Funds have coordinated the reporting of carbon footprints. See fact sheet.
AP2’s carbon footprint is calculated for holdings as of December 31 of the current year using the latest available carbon data for direct emissions (Scope 1) and indirect emissions from energy (Scope 2) and emissions in the company’s entire value chain (Scope 3), i.e. from the production of purchased materials to emissions during the use of the company’s product and any waste management of the product. The company’s emissions such as business travel and other emissions that the company causes, but does not directly own or control, are also included.
Read more about AP2’s carbon footprint in the Fund’s Annual report and Sustainability report.
Carbon footprint benefits
- Provides basis for determining certain climate-related financial risks and for pricing carbon emissions.
- Can provide a basis for influencing companies concerning requirements for emission-reduction targets, risk management, business strategies and transparency.
- Improves AP Funds’ transparency and encourages greater transparency within the business community as well as promoting the provision of higher-quality data.
Carbon footprint limitations
- Fails to assess the investments’ total climate impact because:
- Only certain emissions are included
- Emissions data from companies is incomplete
- Only certain asset classes are assessed
- Reductions in emissions derived from products and services not included
- Information about fossil-based reserves not included.
- Fails to assess a portfolio’s total climate risks, such as the physical risks of extreme weather, flooding and drought or the consequences of more stringent legislation governing energy efficiency. Nor is a carbon footprint a reliable measure of a portfolio’s overall climate potential or how well it is positioned for transition to a carbon-efficient society.
- Fails to assess what is required to achieve the CO2 target and provides no guidance on how investors can help achieve it. A narrow focus on the reduced footprints of individual portfolios risks diverting attention from actual emission reductions and ways for investors to realize solutions for achieving a carbon-efficient economy.
Reporting of Scope 3 emissions
Scope 3 emissions are affected by the poor quality of the underlying companies’ reporting, which means that there may be variations between years and that we will need to revise historical data as the availability of data develops. In addition, double counting occurs when Scope 3 figures are summed up in an investment portfolio. However, we believe it is important to develop reporting with all scopes included and want to be as transparent as possible regarding the portfolio’s emissions.
Carbon footprint for all asset types, Scope 1, 2 and 3
Carbon footprint for all of AP2’s asset classes see page 23 in Sustainability Report 2024. Link.
Read more about AP2’s carbon footprint in the Fund’s Annual report and Sustainability report. Link.