Sometimes we refrain from investing

We expect companies to respect the international conventions and agreements supported by Sweden. As a long-term and responsible investor with a global and diversified portfolio, we focus on encouraging companies to prioritise responsible actions.

• Första AP-fonden chooses not to invest in individual companies that act in contravention of the international conventions to which Sweden is a signatory when we believe our ability to influence them is limited. We also choose not to invest in: 
  
  Tobacco: We do not invest in companies that produce tobacco.
  
  Cannabis: We do not invest in companies that produce cannabis for non-medicinal use.
  
  Controversial weapons: We do not invest in companies that manufacture or market cluster bombs, nuclear weapons or landmines.
  
  Fossil fuels: We do not invest in companies with significant operations in coal, oil or gas industries. Nor do we invest in companies that mine coal, own large coal reserves or are major producers of coal-fired power.

• Before excluding a company, we always invite the company to discuss the matter; and they may still be considered for investment if they show that they are willing to change. 

Exclusion as a last resort

The First, Second, Third and Fourth AP Funds collaborate through the AP Funds Council on Ethics to identify companies that seriously violate, or risk violating, international conventions and work together to bring about positive change in these companies. Before excluding any company that seriously violates conventions, we always invite the company to discuss the matter; and they may still be considered for investment if they show that they are willing to change. 

The Council on Ethics can recommend exclusion of the company to the AP Funds if attempts at dialogue with a company have failed to resolve the problems within a reasonable time. As a result, Första AP-fonden sells its holding and excludes the company from future investments.

 Learn more about the AP Funds Council on Ethics.

Första AP-fonden’s exclusion list for listed equities and fixed-income securities includes around 20 companies in which the Fund’s investment managers are prohibited from investing. Companies have been added gradually since 2001. In some cases, the problems have ceased and the companies in question have been removed from the exclusion list

”If the dialogue does not lead to the desired result within a reasonable time, we can exclude the company.”

The AP Funds have established joint guidelines outlining assets that should not be included in the Funds’ investments. You can view them here.