AP4 does not invest in

Our main tool as an owner is to influence companies to contribute to sustainable development for society, companies and individuals. Over the past ten years, a great deal has been done in the area of sustainability and companies have come a long way, but there is still a lot to do. One step in the integration of sustainability into our asset management is the values-based decisions about which assets we choose not to invest in. In some cases, we choose not to be owners in individual companies or sectors.

When we make a decision regarding an investment, it is based on the requirement set forth in the AP Funds Act, that asset management ought to be conducted in an exemplary way. Investment decisions are also based on the Swedish state’s core values, which means the international conventions and agreements that Sweden has chosen to support. These include, for example, the UN’s Universal Declaration of Human Rights and, with respect to the climate issue, the Paris Agreement.

In cases where there is confirmed information that a company is in any way in violation of a given convention, the AP Funds’ joint Council on Ethics can recommend that the AP Funds not invest in the company.

Since we believe in the strength of dialogue to wield influence, we consider disinvestment as a last resort when a company does not heed our views or is not open to constructive dialogue and improvement of its operations.

In addition to these companies, we have decided not to invest in operations producing nuclear weapons, cluster munitions and mines, tobacco and cannabis, as well as companies where thermal coal and oil sands account for more than 20 percent of the companies' turnover. AP4 may also choose not to invest for company-specific reasons.

Read more about our views on these sectors in the Annual Report 2021 on page 36.