As of June 1, 2022, 14 new companies will be added to AP7’s blacklist. All new companies are blacklisted because they do not act in line with the Paris Agreement due to large-scale coal operations or oil sands extraction without credible transition plans. A total of 102 companies are blacklisted and excluded from the fund’s investment universe.
AP7’s blacklist is revised twice a year, in June and in December. AP7’s blacklisting is an active ownership measure aiming to encourage companies to transition to a more sustainable and thus long-term profitable direction. The blacklisting is an engagement tool, alongside other tools such as company dialogues and voting at general meetings.
AP7 invests in companies that act according to the requirements of the international conventions that Sweden has signed, and which are expressed in the UN Global Compact’s ten principles. The principles describe companies’ responsibility for human rights, working conditions, the environment and anti-corruption. AP7 also blacklists companies that participate in the development and production of nuclear weapons. Since December 2016, the Paris Agreement to the UN Climate Convention is one of the standards on which the analysis is based. The climate blacklist is being developed continuously in line with the IEA’s roadmap for net zero climate emissions by 2050.
– A large proportion of the new blacklisted companies are coal companies without credible transition plans. We do not make sector-wide exclusions but blacklist companies with large scale operations in thermal coal and coal power that haven’t initiated their transition. Our blacklisting is the result of engagement and analysis where we have found that many companies are moving in a positive direction. In some cases, it is too early to determine the credibility in companies transition plans, but over time it will become increasingly clear, says Charlotta Dawidowski Sydstrand, Head of ESG at AP7.
All 14 new blacklisted companies are blacklisted because they do not meet the requirements for credible climate change plans and conduct coal or oil sands operations.
As of June 1, 2022, 14 new companies have been blacklisted
- Adani Enterprise Ltd – Thermal coal extraction (India)
- PT United Tractors Tbk – Thermal coal extraction (Indonesia)
- Guanghui Energy Co Ltd – Thermal Coal Mining (China)
- Aluminum Corp of China Ltd – Extraction of thermal coal (China)
- China Hongqiao Group Ltd – Coal Power (China)
- Shenergy Co Ltd – Coal Power (China)
- Tenaga Nasional Bhd – Coal Power (Malaysia)
- Shenzhen Energy Group – Coal Power (China)
- Metro Pacific Investments Corp – Coal Power (Philippines)
- Canadian Natural Resources Ltd – Oil Sand (Canada)
- Cenovus Energy Inc – Oil Sand (Canada)
- Imperial Oil Ltd – Oil Sand (Canada)
- Suncor Energy Inc – Oil Sand (Canada)
- ConocoPhillips – Oil Sand (USA)
Five companies have been removed from the list
The five companies that are no longer blacklisted are Cintas Corp, Entergy Corp, The Southern Company, TC Energy Corp (formerly TransCanada) and Toshiba Corp. This is based on the fact that there is no verified information about ongoing norm violations from these companies.
Read the complete blacklist: AP7 Blacklist June 2022