The mission shapes AP3’s approach to sustainability
AP3’s sustainability work is the basis for long-term value creation and should create value for the state income pension system and contribute to a sustainable development within the framework of its mission.
The mission in short
- AP1, AP2, AP3 and AP4 share the same parliamentary mission: to generate high returns for the state income pension system at a low level of risk.
- The funds are required to manage their assets in an exemplary way through responsible investments and practices.
- The asset management must focus especially on how to promote sustainable development without compromising on the goal of high returns.
- The AP funds are not permitted to have industrial and trade policy objectives.
- The AP funds’ shared values form part of the sustainability policy
Governance and implementation of AP3’s approach to sustainability
Sustainability work is integrated across all the fund’s management units, with the listed equities, fixed income and alternative investment departments responsible for complying with the policy and contributing to the analysis of sustainability-related risks and opportunities. The units are represented on the SCGC and internal portfolio managers are part of the AGH.
The Board adopts AP3’s sustainability policy as part of the fund’s operating plan. The CEO is responsible for ensuring that the policy is complied with and implemented. AP3’s Sustainability and Corporate Governance Committee (SCGC) decides on key sustainability issues. The Sustainability Advisory Group (AGH) coordinates the preparatory analysis work and ensures it is done.
AP3’s positions address key issues and areas for AP3 to focus on. Fund-level positions are adopted by the Board and are intended to guide AP3 at an overall level and to address environmental, social and corporate stewardship issues. They must also contribute to achieving the UN sustainable development goals under Agenda 2030.
An important part of the sustainability work is to communicate the fund’s positions, priorities and objectives, and to report on the results achieved and how the fund approaches monitoring and evaluation.
Policies directly related to sustainability
In 2021, the Board adopted the following policies directly related to sustainability:
Risk policy, Sustainability policy, Stewardship policy, Goals and management principles, Investment guidelines for management activities.
The sustainability policy will govern the sustainability work of the management organisation and serve as a guide for external stakeholders, in both cases providing clarity on the purpose of AP3’s sustainability work. […]
AP3’s sustainability process
To support the difficult decisions that sometimes need to be made, AP3 has a clear process that draws on the fund’s collective access to resources, including external partnerships. […]
Based on the Board’s positions, AP3 is currently working with the following four focus areas: Environment and climate, Biodiversity, Social responsibility, and Corporate stewardship issues. […]