Sustainability & Active Ownership

Goals, results and reporting

Första AP-fonden has seven overarching sustainability goals. The Fund reports on its goal accomplishment annually, and the sustainability report is an integral part of the annual report.

Sustainability goals

Första AP-fonden’s seven sustainability goals are:

  1. The portfolio should be carbon-neutral by 2050, mainly by the companies we own reducing their carbon footprint.
  2. We shall increase dedicated investments that promote the UN’s Sustainable Development Goals.
  3. All holdings in the real estate portfolio must report in accordance with GRESB (Global Real Estate Sustainability Benchmark) and steadily improve their GRESB score.
  4. We shall vote in all shareholders’ general meetings in Swedish portfolio companies. If the Fund votes against the board or nomination committee’s proposals, a dialogue shall be initiated.
  5. We shall strive for the percentage of women in the companies in which the Fund is represented in the nomination committee to be at least 40 per cent.
  6. We shall vote in at least 800 foreign shareholders’ general meetings a year.
  7. Every year we shall send follow-up letters to at least 50 foreign companies where the Fund has voted against the board’s proposals.

Sustainability reporting

Första AP-fonden aims to comply with the guidelines set out in the Swedish Annual Accounts Act on sustainability reporting, although the Fund is not formally obliged to apply them. The fund’s sustainability report is integrated with its annual report.

Carbon footprint

The Fund measures and publishes the equity portfolio’s carbon footprint as part of the annual report.

The AP Funds have drafted common guidelines for carbon footprint reporting. Four indicators have been chosen as a basis for reporting of the portfolio’s carbon footprint. To increase transparency on the causes of the changes over time, the AP Funds have evolved their common approach to reporting their carbon footprint.

A detailed outline of how we calculate the carbon footprint can be found here.

Reporting of voting

How we vote at general meetings is published here. We also occasionally publish written comments on our standpoints; these can be found in the news section here on our website.

The Council on Ethics of the Swedish National Pension Funds

The Council on Ethics of the Swedish National Pension Funds reports its work in the annual report published on the Council’s website.

PRI

Första AP-fonden has signed and supports the UN-backed Principles for Responsible Investments (PRI) initiative. In the PRI network, more than 2,000 investors collaborate globally on a number of principles that promote increased understanding and implementation of responsible, sustainable investments. The principles are a key element of AP1’s work on responsible investment, and we report our activities annually to the PRI. The Fund’s latest PRI report can be found here.

The Government’s review

The Swedish government reviews the AP Funds’ operations annually. The results of the review are usually presented in May, and can be downloaded from the government website.