Active ownership and sustainability

Cooperation for a sustainable world

Global guidance and cooperation

AP1’s work on active ownership and sustainability takes place within a framework of principles, goals and cooperations. Their very number is a reflection that the Fund has significant capital in many different asset classes.

Global Compact

The UN’s minimum requirements on corporate sustainability, known collectively as the Global Compact, are linked to international conventions on human rights, labour conditions, employment conditions, the environment and anti-corruption. The Fund expects all companies to live up to these.

Sustainability Development Goals

The UN’s 17 global Sustainable Development Goals (SDGs) contain a total of 169 interim goals for all parts of society. AP1 strives to invest in line with these goals.

AP1 has endorsed Sustainable Development Investments (SDIs), a viewpoint on investing in solutions that contribute to the UN’s SDGs.

Principles for Responsible Investment

PRI is a UN initiative with guidelines for processes that integrate sustainability issues into asset management and the own organisation. AP1 is a long-standing member. The Fund completes an annual survey on how the principles are implemented.

OECD guidelines

The OECD has long had guidelines for sustainability in multinationals.

Responsible Business Conduct

The OECD’s principles for investors, Responsible Business Conduct for Institutional Investors (RBC), specify practical ways in which investors can monitor and manage their sustainability risks. AP1 is working to integrate RBC risks into its reporting.

Responsibility for human rights is detailed in the UN Guiding Principles. The UNGP Reporting Framework has guidelines on reporting.

International Corporate Governance Network (ICGN)

A global cooperation to raise standards in active ownership, relating for instance to rights for shareholders to vote at general meetings. The ICGN members are from 47 countries and manage total assets in excess of USD 34,000 billion.

Global Reporting Initiative

The GRI contains guidelines for reporting sustainability. AP1 applies the GRI /link/ and recommends that its companies do the same.

Extractive Industries Transparency Initiative (EITI)

An initiative for open reporting in the extractive industries, primarily oil companies, aiming to avoid corruption.

Global Real Estate Sustainability Benchmark

GRESB is a global, industry-driven organisation that collects and compares sustainability information for real estate companies and funds, as well as infrastructure investments, on behalf of investors. AP1 requires that real estate companies and funds report to GRESB.

CDP

Major asset managers impose demands on the world’s biggest listed companies to report emissions relating to the climate challenge. The Fund supports the collection of carbon dioxide and water data.

Institutional Investors Group on Climate Change

IIGCC is a European investors group that collaborates on climate issues by putting forward investors’ views and engaging companies, authorities and other investors.

Montreal Carbon Pledge

Under this pledge AP1, together with many other investors, undertakes to measure and report its portfolio’s carbon footprint annually.

Investor Platform for Climate Actions

A platform for cooperation on activities to reduce climate change. The IIGCC, PRI and CDP are some of the parties behind the initiative, along with more than 400 investors.

Transition Pathway Initiative

TPI is a global initiative of major investors that focuses on how companies act on climate issues and how well prepared they are for a world with a low carbon footprint. AP1 is a member of the steering group.

Climate Action 100+

A five-year global initiative for investors, aimed at engaging in dialogue with the 100 companies that are deemed to have the largest carbon footprint globally. The data is obtained from the TPI.

Task Force on Climate-Related Financial Disclosure

The TCFD is a new group of experts commissioned by the G20 to propose how climate-related risks should be reported. In the longer term, the Fund aims to report in accordance with the recommendations.

The AP Funds’ Council on Ethics

A collaboration between the First, Second, Third and Fourth AP Funds to influence non-Swedish companies to improve their sustainability work.

Sustainable Value Creation

A collaborative project between 17 of Sweden’s largest institutional investors and Nasdaq OMX to highlight the importance of companies working in a structured way with and reporting on sustainability issues.

Institutional Owners Association

A collaboration between AP Funds, insurance-company and bank-related funds etc. The association is one of the principals for Swedish self-regulation on the capital market through the Association for Generally Accepted Principles in the Securities Market.

The Swedish Securities Council

Part of Swedish self-regulation, within the framework of the Association for Generally Accepted Principles in the Securities Market. Issues statements, gives advice and information on issues relating to companies’ and other players’ conduct on the Swedish equity market.

The Swedish Academy of Board Directors

The Swedish Academy of Board Directors is a non-profit membership organisation aimed at improving corporate governance in Sweden.

The Remuneration Academy

Strives to ensure remuneration systems in companies are effective, balanced and relevant, and perceived as legitimate by the company’s various stakeholders.

Sweden Sustainable Investment Forum

SWESIF is an independent networking forum for organisations that work for or with sustainable investments in Sweden. Its aim is to raise awareness and interest in sustainable investments among institutional asset owners and managers.