Stockholm (NordSIP) In its latest annual report published earlier this year, the AP funds’ Ethical Council underlines the importance of engaging with portfolio companies on ESG issues rather than excluding companies that do not fit certain criteria.
“The Ethical Council has during the past 10 years worked with engagement as a means to solve problems and incidents that occur in business operations of investee companies. It is a sustainable strategy instead of selling the companies,” said AP3’s Peter Lundkvist, the recently nominated chairman of the Ethical Council, as reported by IPE. Initially, remaining as owners and working for improvements had been a bit of a unique approach from the council, he told IPE – but it had since evolved “to become the standard for responsible investors.” “We think it’s much better to stay on as an investor as long as you possibly can,” Lundkvist said. “Of course you always come to some point in time when you feel it is meaningless, when the company isn’t listening to you,” he said.
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