AP2 expects external managers to commit to net zero and work with their portfolio companies’ climate risks – transition risks and physical risks – and opportunities, based on their business models.

AP2’s expectations of external managers

Commitment and goals	Long-term net zero goal for the portfolio (2050 or earlier).
Transition plan/Climate plan	Robust plan to reach net zero, SBTi-adjusted or equivalent. All portfolio companies to have credible plans to reduce emissions.
Emissions	Report absolute emissions, for Scope 1, 2 and 3.
Transparency	Report based on TCFD (Task Force on Climate-Related Financial Disclosures), not required but encouraged.