AP funds’ Ethical Council promotes responsible ownership

    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.

    Picture (c) Bruce-Rolff—shutterstock

    Aline Reichenberg Gustafsson, CFA
    Aline Reichenberg Gustafsson, CFA
    Aline Reichenberg Gustafsson, CFA is Editor-in-Chief for NordSIP and Managing Director for Big Green Tree Media. She has 18 years of experience in the asset management industry in Stockholm, London and Geneva, including as a long/short equity hedge fund portfolio manager, and buy-side analyst, but also as CFO and COO in several asset management firms. Aline holds an MBA from Harvard Business School and a License in Economic Sciences from the University of Geneva.

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