Swedish National Pension Fund Första AP-fonden (AP1) to Measure Sustainability Through Arabesque S-Ray®

Arabesque S-Ray® and AP1 are working closely together to develop a sustainability score assessing the compliance of companies with Human Rights. London Arabesque today announced an agreement to provide the Swedish national pension fund Första AP-fonden (AP1) with ESG data through its proprietary technology Arabesque S-Ray®. As part of the new partnership, AP1 and Arabesque will also collaborate on developing a unique score for S-Ray® that quantifies the performance of companies based on the UN Guiding Principles on Business and Human Rights (UNGP Score).

Arabesque S-Ray® is an algorithm-based tool that analyses the sustainability performance of approximately 7,000 of the world’s largest listed corporations using self-learning quantitative models and data scores. The technology systematically combines over 200 ESG metrics with news signals from over 50,000 sources across 15 languages. It is the first tool of its kind to rate companies on the normative principles of the United Nations Global Compact (GC Score). Additionally, S-Ray® provides an industry-specific assessment of companies’ performance on financially material sustainability criteria (ESG Score). Both scores are combined with a preferences filter that assesses a company’s business involvements.

One of five AP-funds in the Swedish national income pension system, AP1 has assets under management of approximately SEK 338 billion in a global portfolio consisting of equities, fixed income securities and alternative investments. In its role as investor and asset owner, AP1 places high demands in the areas of environmental, social and corporate governance.

Through a collaborative effort with AP1, and with the expert advice of Shift, the leading center of expertise on the UNGPs, Arabesque S-RayÒ will develop a new measurement of the human rights performance of thousands of companies based on the UN Guiding Principles on Business and Human Rights. Under the Guiding Principles, endorsed by the UN Human Rights Council in 2011, companies are expected to identify impacts on people, prioritize action on those that would be most severe, remedy actual impacts, and measure and communicate the effectiveness of their efforts. The UNGP Score will be the first transparent and objective means to assess corporate performance under the Guiding Principles.

Advising on the development of the UNGP Score is John Ruggie, Professor in Human Rights and International Affairs at the Harvard Kennedy School of Government, and author of the UN Guiding Principles on Business and Human Rights. Speaking on today’s announcement, Professor Ruggie said: “This joint initiative with AP1 is a first of its kind in the investment universe. Virtually every element within the “S” in ESG is directly or indirectly related to Human Rights, yet few in the investment community have recognized that fact. This joint initiative combines the subject matter expertise of Shift, whose board I chair, and the superior technical capacity of Arabesque S-RayÒ to provide specific information on human rights factors as well as a more robust ‘S’”.

Maria Mahl, Head of the Nordics at Arabesque, said: “We are delighted that AP1 will integrate Arabesque S-Ray®, our ESG data aggregator tool, to measure and analyse the impact of its portfolios. Sweden is at the forefront of the global sustainability movement and through partnerships such as this, we are excited to help move ESG integration to the next level across the region.”

Nadine Viel Lamare, Head of Sustainable Value Creation at AP1 said: “Arabesque S-RayÒ is a welcomed addition to the other ESG databases that we already use. To get daily rating updates is particularly valuable. S-Ray also provides us with a score on Global Compact preparedness which we have been looking for. We now look forward to develop another score together with Arabesque that will help us and other investors identify salient human rights in our portfolios.”

For further information:

Nadine Viel Lamare, Head of Sustainable Value Creation, Nadine.VielLamare@ap1.se

Press release as pdf.

2018

Swedish National Pension Fund Första AP-fonden (AP1) to Measure Sustainability Through Arabesque S-Ray®

Arabesque S-Ray® and AP1 are working closely together to develop a sustainability score assessing the compliance of companies with Human Rights.

Young employees give new perspectives

New recruits at Första AP-fonden (AP1) are plunged straight into the core business and have an opportunity to influence the results.

Financial institutions launch cutting-edge research project to integrate climate change into strategic investment decisions

The financial institutions AP1, a.s.r., OPTrust, Pensioenfonds van de Metalektro (PME) and Philips Pensioenfonds, supported by Ortec Finance - the provider of investment decision technology and solutions - announce the launch of their climate-savvy Asset Liability Management/Strategic Asset Allocation (ALM/SAA) pilot project.

Green financing for Willhem AB

Första AP-fonden’s (AP1’s) wholly owned housing company Willhem is planning to issue a ‘green bond’ to fund its environmental initiatives.

Första AP-fonden’s return for the first half of 2018

Första AP-fonden’s (AP1’s) net investment income for the first half of 2018 amounted to SEK 8.5 billion (16.1) after expenses.

Important for a board member to dare to say no

The nomination committee helps ensure that the Board of Directors is comprised of the right areas of expertise.

AP1 invests in new Emerging Markets Equity Impact fund of BlackRock

BlackRock has launched the BlackRock Emerging Markets Equity Impact Fund, responding to Swedish pension fund AP1’s wishes to invest with sustainability considerations in the emerging markets.

Sustainable investments on emerging markets

Första AP-fonden (AP1) is investing in a new, data-driven fund with a sustainability emphasis, with investment management company BlackRock. The focus is on emerging markets.

The Council on Ethics focuses on counteracting corruption

The Council on Ethics of the Swedish National Pension Funds (the Council) celebrated ten years in 2017. During these ten years, the Council has influenced global portfolio companies to improve their work and information regarding environmental, social issues and corporate governance through corporate dialogues.

Första AP-fonden’s return for 2017 was 9.6 per cent after expenses

Första AP-fonden’s (AP1’s) net investment income for 2017 as a whole amounted to SEK 29.3 (27.0) billion after expenses.

2017

Climate Action+

Första AP-fonden (AP1) has signed the Climate Action 100+, a collaborative five-year global initiative.

Hermes Investment Management wins $400 million Global High Yield mandate

Hermes Investment Management, the £30.1 billion manager (30.6 2017), has been appointed to manage a $400 million Global High Yield credit investment mandate by Första AP-Fonden (AP1), one of five buffer funds in the Swedish national income pension scheme.

Första AP-fonden’s return for the first half of 2017 was 5.2 per cent after expenses

Första AP-fonden’s (AP1’s) net investment income for the first half of 2017 amounted to SEK 16.1 billion (10.6) after expenses. This equals a return of 5.2 per cent (3.5).

The Ethical Council Annual Report 2016 – Human rights continues to be in focus

The Ethical Council of the Swedish AP Funds celebrates ten years 2017. During these ten years the Council has through engagement encouraged the AP Funds' global portfolio companies to improve their work on environmental issues, human rights and corruption.

Elo, Första AP-fonden and Trevian establish a joint venture to invest in Finnish real estate

Elo Mutual Pension Insurance, Första AP-fonden (AP1) and Trevian Asset Management Oy have agreed to establish a joint venture company which invests in the Finnish real estate market.

Första AP-fonden’s return for 2016 was 9.3 per cent after expenses

Första AP-fonden’s net investment income for 2016 as a whole amounted to SEK 27.0 billion (11.3) after expenses.

2016

Första AP-fonden accepts GE’s bid for Arcam

Första AP-fonden (AP1) has decided to accept General Electric’s (GE) bid for Arcam. The bid expires tomorrow Friday 14 October.

Första AP-fonden’s interim report January – June 2016

Första AP-fonden’s net investment income after expenses for January – June 2016 amounted to SEK 10.6 billion. Return after expenses was thus 3.5 per cent.

Första AP-fonden’s 2015 annual report

Första AP-fonden’s net investment income after expenses for 2015 amounted to SEK 11.3 billion. The return was 4,0 percent after expenses, which is in line with the Fund’s target.

2015

AP Funds to co-ordinate carbon footprint reporting

The Swedish AP Funds, the First, Second, Third, Fourth, Sixth and Seventh AP Funds, have agreed to coordinate the way carbon footprints are reported.

Första AP-fonden’s six-month report

New initiatives and targets met by a margin

Strategic partnership to invest in European office properties

First and Second Swedish National Pension Fund, together with TIAA-CREF, create strategic partnership to invest in European office properties

AP1 part of consortium acquiring Fortum Distribution AB

Första AP-fonden har som del av ett konsortium bestående av Borealis Infrastructure, Tredje AP-fonden (AP3), Folksam med dotterbolag och Första AP-fonden (AP1) (”Konsortiet”) idag ingått avtal om att förvärva Fortum Distribution AB, Fortums elöverföringsverksamhet i Sverige.

Första AP-fonden’s annual report: High return benefits the pension system

Första AP-fonden’s net investment income after expenses for the 2014 full year amounted to SEK 36.4 billion. Return after expenses was 14.6 per cent.

2014

Första AP-fonden hires Kaj Martensen

Första AP-fonden (AP1) has hired Kaj Martensen from January 1, 2015.

Första AP-fonden’s semi-annual report

Good return makes valuable contribution to the pension system

Första AP-fonden’s annual report: Continued strong return

Första AP-fondens resultat 2013 uppgick till 25 678 mkr efter kostnader.