Collaborations and agreements
As a Swedish government body, AP3 is guided by the international conventions and guidelines ratified and supported by the Swedish Parliament. Examples include the UNFCCC with the Paris Agreement, the Convention on Biological Diversity and Agenda 2030.
Sustainable Finance Disclosure Regulation (SFDR)
The Sustainable Finance Disclosure Regulation, (SFDR), came into force in March 2021. The main purpose of the Disclosure Regulation is to boost transparency on sustainability issues and to increase comparability between financial market participants with regard to the integration of sustainability risks and the consideration of negative impacts on sustainable development in processes. The AP funds are not directly covered by the Disclosure Regulation but will develop their reporting with the aim of reviewing how the funds can report in line with the new standard set by the Regulation.
Key agreements
The following agreements within the ethical and environmental areas are of particular importance:
- OECD’s guidelines for multinational enterprises.
- ILO’s core conventions (on forced labour, child labour, equal remuneration, freedom of association and right to organise).
- UN’s Declaration of Human Rights and Ruggie Principles.
- AP3 also encourages companies to adopt the principles of the UN’s Global Compact.
Initiatives and partnerships strengthen the impact of corporate engagement
AP3 works with other investors to increase the opportunities to influence the companies in which the Fund invests. Below is a selection of the initiatives and partnerships in which AP3 is involved. Working with other international investors with a similar sustainability agenda helps increase the ability to influence companies to make positive change and increase transparency in reporting.
Below is a selection of the initiatives and cooperations AP3 is a part of.
- Climate action 100+
- IIGCC – Institutional Investor Group on Climate Change
- PAII – Paris Aligned Investment Initiative
- ICGN – International Corporate Governance Network
- PRI – Principles for responsible Investments
- TPI – Transition Pathway Initiative
- TCFD – Task Force on Climate-related Financial Disclosure
- TNFD – Taskforce on Nature-related Financial Disclosures
In 2016 AP3 signed the Paris Green Bond Statement along with a large number of other global bond market investors to promote green bond issues as a route to financing the transition that climate change necessitates.
Council on Ethics of the AP Funds (Etikrådet)
AP1, AP2, AP3 and AP4 formed a joint Ethical Council in 2007. Each Fund has one representative on the Council. This co-operation is aimed at making positive changes in foreign companies suspected of being in contravention of international conventions on the environment and human rights. The Ethical Council published an annual report detailing the Council’s work and ongoing dialogues. Read more about the work of the Council on Ethics.
Climate Action 100+
Dialogue with 160+ companies with the highest greenhouse gas emissions in the world. Companies are urged to take the necessary steps to bring their climate gas emissions into line with the Paris Agreement. 615 investors with AUM of over USD 55,000 bn. Signed in October 2017. AP3 participates in a number of company dialogues and the Council on Ethics participates in the CA100+ Accelerator (sector-based).
IIGCC (Institutional Investors Group on Climate Change)
AP3 is a member of the investment group IIGCC, which collaborates on climate change issues for European investors. The is to raise investors’ voices on climate change and to engage companies, government authorities, and other investors in this topic. AP3 is pleased to announce that we have signed the 2022 Global Investor Statement to Governments on the Climate Crisis. More than 500 investor signatories representing US $39 trillion in assets have already signed on to the statement, advocating for governments to enact ambitious policies that would leverage the private capital required to effectively address the climate crisis. Visit The Investor Agenda for more information.
PRI (Principles for Responsible Investment)
Aims to encourage investors to integrate ESG in financial analysis and decision-making processes. Signed in July 2006. AP3 reports annually to PRI on the status and progress of its sustainability work.
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Paris Aligned Asset Initiative
The Paris Aligned Investment Initiative is a collaborative investor-led global forum enabling investors to align their portfolios and activities to the goals of the Paris Agreement. As asset owners, we must play our part in helping to deliver the goals of the Paris Agreement and ensure a just transition. We are delighted to become part of the Paris Aligned Asset Owners group as part of our commitment to this goal.
ICGN (International Corporate Governance Network)
ICGN is a global cooperation with the objective to raise the standard of corporate governance. The initiative aims to increase the power of shareholders through more votes in shareholder meetings combined with a stronger position in relation to company management. Also, their mission is to inspire effective standards of corporate governance to promote efficient markets worldwide. AP3 is a member since 2005.
Initiative Climat International
The Initiative Climat International (iCI) is a global community of investors who seek to display leadership in improving the industry’s understanding and management of the risks and opportunities associated with climate change. One of the key tenets of the iCI is mutual collaboration, with members committed to sharing knowledge, tools, experience and best practice methods amongst peers. For members, joining the iCI represents a commitment to effectively analyse, manage and mitigate climate-related financial risk and emissions in their portfolios, in line with the recommendations of the FSB’s Taskforce for Climate-related Financial Disclosure (TNFD).
Transition Pathway Initiative
AP3 signed The Transition Pathway Initiative (TPI), in 2016. TPI is a global, asset-owner led initiative which assesses companies’ preparedness for the transition to a low carbon economy. TPI’s mission is to empower investors to understand and drive the low-carbon transition by providing independent, open-access data showing whether the world’s largest high-emitting companies are adapting their strategies to align with international climate goals.
TCFD – Task Force on Climate-related Financial Disclosure
The TCFD’s framework increases companies’ transparency and gives investors the information they need to assess climate risks and opportunities. Signed in December 2017. The framework is used by AP3 to describe and communicate the Fund’s climate work and the fund encourages its portfolio companies to do the same.
AP3 has joined the ESG Data Convergence Initiative
During the spring of 2022 AP3 joined the ESG Data Convergence Initiative (EDCI), which is an industry initiative within private market investments for coordinating and collaboration on the standardisation of sustainability data. As a first step, the initiative has drawn up definitions and KPIs for monitoring within the categories of the climate, diversity and working conditions. AP3 looks favorably upon the development of an industry standard with uniform KPIs and will engage in a dialogues with its fund managers on the initiative during the year.
TNFD – Taskforce on Nature-related Financial Disclosures
The Taskforce on Nature-related Financial Disclosures was launched in summer 2021. A framework should be in place by 2023. Complete picture of environmental risks and opportunities. Supports the fund’s position in the Sustainability Policy on biodiversity. Signed in September 2021.
Hållbart värdeskapande
Hållbart Värdeskapande is a cooperation between 17 of Sweden’s largest institutional investors and Nasdaq OMX Stockholm. The cooperation was initiated 2009 when Swedish investors and owners of Swedish companies identified a need to further highlight the importance of companies working in a structured way with topics related to sustainability.
EITI (Extractive Industries Transparency)
EITI is an initiative for transparent disclosure in extraction industries, first and foremost oil companies. Together with other international investors, the Fund supports EITI, which sends a message to countries and companies with extractive business operations that shareholders value a clear and transparent disclosure of revenues.
Paris Pledge for Action
Paris Pledge for Action was signed by AP3 before COP21 in December 2015. The initiative implicates that investors, companies, unions and NGOs confirm commitments for a stable and safe climate and will take actions to support this development.
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