The Swedish AP funds’ Council on Ethics has announced that it is to expand in response to an audit conducted during the year.

It will appoint an executive director, whose duties will include establishing an administrative office to continue to drive positive change in companies that the AP funds have holdings in.

The Council on Ethics is a collaboration between AP1, AP2, AP3, and AP4, which aims to drive positive change, primarily in foreign companies in which the funds are shareholders, through dialogue and engagement.

Following its strategic review, the council has clarified its purpose and set long-term objectives.

It will work to ensure that the AP funds serve as “global role models” on sustainability issues, and will support the funds in complex and material sustainability issues to achieve the objectives the AP funds set themselves.

The initiative to screen the AP funds’ holdings in listed foreign equities will be extended to cover business loans, which aims to find out whether the holdings can be associated with violations of international conventions ratified by the Riksdag.

Alongside the appointment of an executive director, two sustainability analysts will be added to the council.

Issuing a joint statement, AP1 CEO, Kristin Magnusson Bernard, AP2 CEO, Eva Halvarsson, AP3 CEO, Staffan Hansén, and AP4 CEO, Niklas Ekvall, said: “The first, second, third and fourth AP fund work together on sustainability to strengthen the AP funds as exemplary managers and responsible owners.

“Developments within and views regarding sustainability have rapidly evolved in recent years, placing increasing demands on our own sustainability work.

“It is therefore important for us to be proactive and further develop the Council on Ethics so that the good work being done can continue to make progress.

“The Council on Ethics is a very important collaborative body for the AP funds, enabling resource-efficient management of potential sustainability risks and thereby also achieving better results for the income pension scheme both today and in the future."

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