Corporate governance - a focus area

AP4 has chosen two focus areas in our work on generating the best possible return over time for our seniors: climate change and corporate governance. These areas were selected because they have major financial impact on all AP4's investment.

 

Affected areas are often a company's strategy, sustainability efforts, the Board, capital structure, compensation and transparency. The aim is that companies should be managed sustainably, responsibly and as effectively as possible. That creates conditions for success and delivers long-term sustainable returns.

AP4’s work with corporate governance and sustainability aims to:

  • contribute to good long-term sustainable return
  • safeguard the best interests of shareholders and individual companies
  • take into account the unique circumstances and need of each individual company
  • exercise the rights and obligations of ownership responsibly and sustainably
  • promote the development of good practice in the securities market. Well-functioning equity markets are essential for long-term investors to be able to generate high and sustainable returns.

Dialogue – main tool

AP4 believes that direct dialogue, preferably face to face with the companies’ boards, management and owners often works best. In order for the dialogues to work and be successful, they are conducted in confidence between the parties and not through media.  

Guiding principles of AP4’s ownership

  • AP4’s fundamental values, which are based on the Fundamental values of the Swedish state and international Conventions
  • AP4’s ownership policy
  • Swedish Code of Corporate Governance (Code)
  • Principles for Responsible Investment (PRI), a UN initiative for responsible investments UN’s  Global Compact.