Stockholm (NordSIP) – Fredric Nyström, Head of Sustainability and Governance at AP3, has been appointed as the new Chairperson of the Council on Ethics of the Swedish National Pension Funds (AP-fondernas etikråd).
The Council of Ethics is responsible for coordinating the work on sustainability-related issues of the four buffer public pension funds in Sweden (AP1, AP2, AP3 and AP4). This is done by providing a platform where the funds can develop and monitor appropriate sustainable guidelines and that they have control and for follow-up systems. “The fund assets must be managed in an exemplary manner through responsible investments and responsible ownership. In the management, special attention shall be attached to how sustainable development can be promoted,” Etikrådet explains.
Etikrådet’s Chairperson
The appointment took effect from January 1st, 2025, and is part of Etikrådet’s approach to the organisation’s Chairperson, which rotates annually between the members of the board representing the AP funds. Nyström replaces AP2’s Åsa Mossberg who was responsible for this role during 2024. Nyström joined AP3 in May 2022, from Öhman Fonder, where he was the Head of Responsible Investment. He also sits on the the Mistra Investment Committee, an environmental research foundation based in Stockholm.
Given the nature of the Chairperson’s appointment and term, there is no room for discretionary agenda-setting during the Chairperson’s tenure. “There is a long term strategy that was agreed upon by all the members of the Council on Ethics. The role of the board, including mine as its Chairperson is to ensure that the long-term agenda we have agreed upon is appropriately followed and implemented,” Nyström explains.
“Beyond these internal responsibilities, the Chairperson does perhaps stand out from the rest of the board in that he also represents Council on Ehtics externally, when interfacing with other government agencies as well as industry counterparties,” Nyström adds.
Continuity and Raising Awareness
Given the long-term approach of the AP funds, much of Nyström’s work with the Council on Ethics will focus on continuity and consolidating recent decisions. “Our new strategy, which was set two years ago, called for Etikrådet to hire its own independent staff so we hired a new executive director in 2023 and two sustainability specialists in 2024. We are still working on the implementation of the strategy and will continue these efforts during the next twelve months,” he explains.
However, Nyström’s focus won’t only be inward. “We want to raise awareness of the Council on Ethics and its work, which we feel might be a leading example for other responsible asset owners. We want to make the Council and our way of working better known internationally among the responsible investment community to advance the sustainable investment agenda, share our experiences and learn from those of others. Our goal is to take a more active role and be more vocal in different platforms. We hope to do precisely this when attending the Mining Indaba conference scheduled to take place in Cape Town in February,” he says.
Staying Flexible
When considering the challenges facing the work of the Council on Ethics, Nyström highlighted the need for principled adaptability. “We need to be able to keep focus on our the long-term strategic vision while also being flexible enough to be able to manage issues as they arise. We need to be able to tackle any black swans that may come our way,” he adds.
According to the Council on Ethics, the other members of the board include AP1’s Magdalena Håkansson, AP4’s Pia Axelsson.
