Corporate Governance and Climate Change in focus

AP4’s sustainability focus areas are Corporate Governance and Climate Change. These are deemed essential for creating returns, managing risks and to the overall development of all AP4 assets. AP4 is an active owner who takes responsibility, influences and contributes to the long-term sustainable value creation of companies. This can in turn contribute to safe pensions.

The following summarizes aspects of the work carried out during the first six months of 2016.

  • AP4 participated in 27 Swedish listed companies’  nominating committees, of which as Chair of four.
  • The proportion of female directors is increasing, which is an endeavor that AP4 has pursued for many years. 13 of 33 newly elected directors were women in the nomination committees in which AP4 participated and that held their annual general meeting during the spring. This corresponds to 39 percent newly elected female directors.
  • AP4 has held more than 25 dialogues with Swedish companies during the spring prior to their AGM, which in several cases resulted in more justifiable terms of meeting proposals and led to improved disclosure by the companies. In addition, AP4’s management had regular contact during the period with more than 125 Swedish companies.
  • AP4 has participated in the AGM’s of 79 Swedish companies.
  • AP4 has voted at the AGM of 616 foreign companies.
  • AP4 has had success in promoting several enhanced climate reporting. Shareholder proposals had been laid out by AP4 together with other investors to Anglo Americans, Glencore, Rio Tinto’s as well as ConocoPhillips AGM’s.
  • 22 percent of AP4’s global equity portfolio is invested in low carbon strategies, which reduces AP4’s exposure to companies with large emissions of carbon dioxide and fossil reserves.
  • 4.2 billion kronor of AP4’s assets are invested in green bonds. AP4 is active in both the primary as well as the secondary market for green bonds.
  • AP4 shares their knowledge and experience in low carbon strategies and green bonds. AP4 has on request given some 40 presentations at conferences and other official occasions, including at the United Nations in connection with the signing of COP21 agreements.
  • AP-Funds Ethical Council 2015 Annual Report was  published during the Spring. The AP-Funds Ethical Council is a collaboration between First-Fourth Swedish National Pension Funds. AP Funds’ Ethical Council works to influence foreign companies to positive changes within the context of sustainability.