Sweden’s AP2 is to increase its allocations to sustainable infrastructure as part of its work on sustainability.

The announcement was made in the fund’s sustainability report, in which it detailed how it has continued to develop its work as a responsible investor and responsible owner. A strong focus has been on how the fund can contribute to a low-carbon economy.

AP2 said it strives to be as transparent as possible and the report presents the work based on the fund's four focus areas within sustainability: climate, corporate governance, diversity and human rights. The report also includes a section on the fund's work on impact.

"One area that requires major investments is sustainable infrastructure, as energy and transport systems need to undergo a rapid transition, from fossil fuels to renewable sources. In 2022, the fund will further increase its allocation to sustainable infrastructure. We have made a total of seven investments, the most recent of which was during the first half of 2022," AP2 CEO, Eva Halvarsson, said.

"The fund also believes that sustainable forestry is important for achieving net zero emissions and has therefore decided to define criteria that an investment in timberland must meet in order to be defined as a climate investment.

"Over the past year, we have evaluated how we can understand and measure the impact of our investments – the impact that the investments have on the environment and people. During the spring, we conducted an analysis of the entire listed portfolio based on the impact on the UN's Sustainable Development Goals. Our ambition is to better identify and manage impact risks and opportunities.”

Over the past year, AP2 has evaluated how the fund can understand and measure the impact of its investments – the impact that the investments have on the environment and people – with two main purposes. One purpose is to make targeted sustainability investments in such a way that the fund can target, measure and follow up the expected positive impact of these investments. The second is to understand and be able to manage impact risks and opportunities throughout the listed portfolio.

A review of the listed portfolio has been carried out, which, among other things, has identified companies that have impact risks and opportunities from a climate perspective. UN's Sustainable Development Goal 7 (Sustainable energies) and 13 (Fighting climate change) are two selected goals in the climate area where the fund will engage in impact work by following up companies with high risk within the respective sustainability goals.

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