AP7 Moves to Implement Green Mandates

Stockholm (NordSIP) – AP7, the largest pension fund in Sweden, is transferring €290 million from stocks deemed to be in violation of the Paris Agreement objectives to mostly mid-cap SDG-aligned stocks focusing on impact measurement, it emerged this week.

The move follows AP7’s blacklisting a number of companies last year. The blacklisting was initiated to put pressure on fossil fuel companies and convince them to adapt their activities to low carbon objectives. The transfer corresponds with two green impact mandates issued by AP7 and is being made to companies that contribute solutions to climate problems.

AP7 has chosen KBI Global Investors and Impax Asset Management to manage these mandates. The first is fully focused on SDG#6: Clean Water and Sanitation, which will be run by KBI, while the Impax portfolio is more broadly based, spanning multiple global sustainability targets, says AP7 chief of communications Johan Florén.

The full list of blacklisted companies is as follows:

  • Entergy (for counteracting climate legislation in the United States)
  • Exxon (for counteracting climate legislation in the United States)
  • Gazprom (for counteracting climate targets through the extraction of Arctic oil in Russia)
  • Southern Corp. (for opposing climate legislation in the United States)
  • TransCanada Corp. (for counteracting climate targets via large-scale oil pipeline construction in the U.S. and Canada)
  • Westar Inc. (for counteracting climate legislation in the United States)

AP7 also appointed Rose Marie Westman as its new supervisory board chair. Westman is chief economist at Burenstam & Partners and has previously served as financial analyst and portfolio manager at Alecta.

AP7 provides pensions to 3.5 million Swedish citizens.

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