Första AP-fonden sustainability strategy aims to maximise the Fund’s risk-adjusted returns, ensure compliance with our core values, and promote sustainable development.
The sustainability strategy encompasses all classes of asset, clarifies efforts related to sustainability, while also staking out a path for the ongoing evolution of the Fund’s work with the aim of:
- Ensuring that investments do not violate the Fund’s core values by choosing not to invest in particular companies or sectors.
- Contributing to the Fund’s risk-adjusted return by integrating material sustainability aspects into investment decisions.
- Promoting sustainable development, without compromising on the overarching return target, through dedicated investments and active ownership.
Sustainability aspects in the investment process
We are convinced that the best way for the Fund to achieve this overarching goal of delivering the best possible return is by us considering sustainability aspects in our investment decisions. This is why it is vital to be able to measure, analyse and follow-up material sustainability aspects so that we can make informed decisions.
The way in which sustainability aspects are integrated into the investment process is adapted for each investment strategy, and our asset managers have direct access to data and analyses from various external suppliers. We have specific guidelines and processes for investing in companies that we judge to have a particularly high sustainability risk.
Investments we refrain from
In cases where we feel that an industry or company operates in a way that is inconsistent with our core values, we refrain altogether from investing. At present, Första AP-fonden has chosen to exclude a number of companies that act in conflict with international conventions or national laws, as well as companies that operate in sectors that do not conduct themselves in a way that harmonises with the Fund’s core values. These sectors are nuclear weapons, tobacco and cannabis, as well as cluster munitions and land mines.
Första AP-fonden’s current exclusion list can be downloaded here.
We intend to increase the number of dedicated investments that promote the UN’s Sustainable Development Goals. Dedicated investments are investments that contribute to major sustainability effects in relation to the capital invested, and also meet the Fund’s overarching return target. Through the infrastructure company Polhem Infra AB, for example, we will invest in unlisted companies that readily meet the requirements for dedicated investments.