The Swedish AP pension funds’ Ethics Council has published its 2022 annual report, which revealed that it had screened around 3,200 companies for possible violations and incidents.

Just over 3,200 holdings in the AP funds’ portfolios were reviewed during 2022 following incidents that may have been violations of an international convention.

In total, 3,091 passed the review without any objections.

A successful project was completed last year regarding child labour in the cocoa industry, while another 16 new dialogues have been started.

Eight proactive projects are being run with a focus on human rights, climate and corporate governance.

Furthermore, impact dialogues were held with 86 companies identified in the Ethics Council’s screenings, with 60 per cent of these relating to suspected violations of human rights, 25 per cent concerned corporate governance and the remaining 15 per cent were related to the environment.

During the year, the Ethics Council contacted and evaluated around 100 firms regarding their climate-relating reporting in line with the Taskforce on Climate-related Financial Disclosures (TCFD).

“The Ethics Council was able to state that the companies have developed both focus and transparency around climate-related aspects,” commented Ethics Council chair, Pia Axelsson.

“The majority of companies appreciated the feedback and the opportunity to discuss how the company can further develop the reporting.”

The council also worked with ongoing operations and carried out strategic work with the aim of evaluating and developing its mission, goals, processes and organisation.

“The strategic development work also results in, from 2023, expanding the Ethical Council's reactive work to include more types of assets,” Axelsson stated.

“The Ethics Council will continue to review foreign listed shareholdings and, in addition, also Swedish listed shareholdings and credits.

“Disclosure will be made of both directly owned and indirectly owned holdings through fund investments, and the goal is to identify companies that are judged to be in violation of international conventions that Sweden has signed.”

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