Sustainability

Sustainability is an integral part of our mission.

AP2’s mandate includes managing the Fund’s assets in an exemplary manner through responsible investment and responsible ownership. Emphasis shall be placed on promoting sustainable development, without compromising the overall objective of achieving high returns and balanced risk.

Sustainable development is a prerequisite for ensuring that both current and future generations receive good pensions. AP2 has an ambitious sustainability approach, based both on the Fund’s mandate and on the conviction that sustainability creates value. This entails a long-term approach to protecting and creating value from a financial, environmental and social perspective.

AP2 has four sustainability focus areas – climate, biodiversity, human rights and corporate governance. AP2’s approach within these focus areas follows a common methodology consisting of six components: integration, analysis, materiality, engagement, collaboration and transparency. Please refer to the Fund’s Sustainability Report for further details.

Focus areas

AP2 focuses its sustainability work on four areas where the Fund can make the greatest impact: climate, biodiversity, human rights and corporate governance. Here, we describe the objectives, strategy and activities within each area.

Stewardship

Sustainability is integrated into AP2’s governance, strategy and daily operations. The Board of Directors has overall responsibility for overseeing the Fund’s sustainability work, which is guided by internal policies as well as international frameworks and principles.

Memberships and initiatives

AP2 collaborates with other investors and organisations to advance sustainable development. Through memberships and participation in a number of international initiatives, the Fund contributes to the development of improved standards and increased transparency.

The Council on Ethics

The AP Funds’ Council on Ethics is a collaboration between AP2, AP3 and AP4. The Council conducts engagement with non-Swedish companies on issues relating to the environment, human rights and business ethics in order to promote long-term responsible business conduct.