Exclusion – the last resort
If AP1’s attempts to engage in dialogue with a company fail to result in the problems being resolved within a reasonable time, normally four years, the company is excluded. This means that AP1 sells its holding and excludes the company from future investments.
In most cases a decision to exclude a company is made alongside other investors, primarily through the AP Funds’ Council on Ethics. The First – Fourth AP Funds have jointly agreed on common guidelines on which assets should not be invested in.
AP1’s exclusion list for listed shares and fixed-income securities contains around 20 or so companies whose securities the Fund’s asset managers may not invest in. Companies have been gradually added to the list since 2001. In some cases the problems have ceased and the companies have been removed from the exclusion list.