Swedes Split on Funds’ Ability to Push Companies on ESG

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    Stockholm (NordSIP) – At the end of November, AP7 announced the results of a survey conducted together with Kantar Sifoon regarding the general public’s view of various aspects of their pension. The results show that a large majority of Swedes think that the AP Funds should take into account the environment and ethics in pension management. However, there seems to be no consensus on whether pension funds can influence companies on ESG issues with age as the main discernable cause of differences in opinions.

    The Survey

    When asked about it, 76% of the respondents agreed that the AP Funds should consider environmental and ethical factors in their investment decisions. 24% said the issues should be taken into account regardless of their effect, 18% argued that they should be considered if they led to higher pension savings and 35% said these considerations should be internalised so long as they did not lower pension savings.

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    However, respondents were very split on whether the pension funds were able to influence companies to adopt better ESG practices. The issues were simplified so that governance, social and environmental sustainability were captured by the ability of pension funds to combat corruption, improve working conditions and reduce climate impact.

    About a third of respondents believe that pension funds can contribute and the greatest expectation is within social sustainability such as better working conditions. On the other hand, a third are doubtful about the possibility for the funds to contribute and around 10% do not believe that the capital can contribute at all.

    Although the answers don’t seem to be biased in either direction by gender, demographics does matter. It appears that younger respondents are more optimistic that pension funds can contribute to sustainability. People aged 18-49 have greater optimism than respondents over the age of 50.

    AP7 Sues Activision and Microsoft

    In other news, AP7 has sued video game company Activision, its board of directors and Microsoft in connection with Microsoft’s proposed acquisition of Activision. The background is that the process surrounding the acquisition, as well as the bid and terms, has not been done correctly and has disadvantaged Activision’s shareholders, which includes AP7 and our savers.

    Filipe Albuquerque
    Filipe Albuquerque
    Filipe is an economist with 8 years of experience in macroeconomic and financial analysis for the Economist Intelligence Unit, the UN World Institute for Development Economic Research, the Stockholm School of Economics and the School of Oriental and African Studies. Filipe holds a MSc in European Political Economy from the LSE and a MSc in Economics from the University of London, where he currently is a PhD candidate.
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