Changes to the AP Funds Act
In preparation for the change, the four AP Funds have collaborated on how the goal of exemplary management will be achieved. This work included developing core values for managing funds, guidelines for reporting how the sustainability goal has been achieved and guidelines on which assets funds should not be invested in.
In the common core values, it is noted that the principle of legality means that the AP Funds must observe the international conventions ratified by Sweden and the international agreements backed by Sweden. These therefore form the basis for assessing which assets funds should not be invested in.
Each Fund interprets how the guidelines affect that Fund’s portfolio, and makes any adjustments to its holdings. On this basis, as of 1 January AP1 no longer invests in the following industries.
- Nuclear weapons. We do not consider the current modernisations and upgrades to existing nuclear weapons to comply with the aim of the Treaty on the Non-Proliferation of Nuclear Weapons, which is for the world to be free of nuclear weapons in the long term.
- Tobacco. We do not consider investments in tobacco production to be line with the spirit of the Framework Convention on Tobacco Control, which aims to dramatically reduce tobacco consumption and the harmful effects of smoking tobacco.
- Coal and oil sands. In our opinion producing these two types of energy, which have by far the worst climate footprints, makes it difficult to achieve the climate goals set out in the Paris Agreement.
The Swedish government reviews the AP Funds’ operations annually and will review the first year under the new law in spring 2020.