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AP3 measures carbon footprint

The Third Swedish National Pension Fund (AP3) has analysed the carbon footprint of its equity investments and found it to be 27 percent lower than the Fund’s global benchmark index.

Prior to the United Nations climate summit in New York in September 2014, AP3 signed the Montreal Carbon Pledge, an initiative that calls on investors to measure and publish annually the carbon footprint of their equity holdings.

The Fund commissioned Trucost, an environmental data specialist, to measure the combined footprint of AP3’s equity holdings. The analysis found the AP3 portfolio’s carbon footprint to be 27 percent lower than the Fund’s global benchmark, the MSCI All Country World Index.

This reflects the AP3 strategy of having higher exposure to Swedish equities relative to other equity classes and maintaining active sector weights. The results help to further expand AP3’s knowledge about the risks and opportunities attached to its investing activities.

Peter Lundkvist, AP3 Senior Strategist and Head of Corporate Governance, said: “AP3 considers environmental and social governance risks in the same way as we analyse other risks relating to our portfolio investments. This approach allows us to develop our knowledge base at first hand.”

AP3’s mission is to manage its assets to generate optimum returns for the state income pension system. The Fund has a long-standing commitment to high standards in environmental and climate issues.

Since 2006, AP3 has worked through the international Carbon Disclosure Project (CDP) to call on businesses to disclose their greenhouse gas emissions. As of 2010, the Fund also works closely with the Institutional Investor Group on Climate Change (IIGCC) on drawing up clear rules to enable institutional investors to invest in a transition to a low-carbon economy.

AP3 also supports the Global Reporting Initiative (GRI), a United Nations initiative to create a global standard for corporate sustainability reporting. In the summer of 2014 the Fund signed the Global Investor Statement on Climate Change.

For further information, please contact:
Peter Lundkvist, AP3 Senior Strategist and Head of Corporate Governance, on +46 8555 17144 or peter.lundkvist@ap3.se
Lil Larås Lindgren, Head of Communications, +46 8555 17123 or lil.lindgren@ap3.se

The Third Swedish National Pension Fund (AP3) is one of five funds that serve as a financial buffer for the state income pension system. Their combined assets account for approximately 13 percent of the income pension system’s capital. As at 30 June 2014, AP3 held portfolio investments totalling SEK 272,579 million. During the first six months of the year, the Fund made a contribution of SEK 2,468 million to the Swedish Pensions Agency help cover a deficit between pension system contributions and liabilities.