The Council on Ethics

The Council on Ethics of the AP Funds coordinates engagement with international companies to promote sustainable value creation and increased transparency. The Council on Ethics is a collaboration between AP2, AP3 and AP4 and was established in 2007. By acting jointly, the AP Funds can be long-term, responsible and active owners with greater ability to influence companies in a positive direction.

Reactive work in response to incidents

Reactive work in response to incidents The Council on Ethics works both reactively and proactively. Its reactive work involves identifying and managing situations where companies may be linked to violations of international conventions and frameworks supported by Sweden. Twice a year, the companies included in the AP Funds’ global listed equity and credit portfolios are screened. When a violation is identified, the Council on Ethics initiates a dialogue with the company concerned.

The aim is for the company to address what has happened, provide remedy to those affected and take relevant measures to prevent similar incidents from recurring. If the company does not demonstrate sufficient improvement, exclusion may be recommended as a last resort.

Proactive work for long-term change

The proactive work aims to address complex sustainability challenges and systemic risks, and to drive positive change at company, sector and system level. The Council on Ethics complements the AP Funds’ other engagement work by focusing on issues where joint action can have a particularly strong impact.

The proactive work covers five focus areas: antimicrobial resistance, child labour and forced labour, technology companies and human rights, climate, and water-related issues.

Positions

Where relevant, the Council on Ethics also develops joint positions together with the AP Funds to clarify expectations of companies in complex sustainability matters.

Read more about the AP Funds’ Council on Ethics at www.etikradet.se