AP7 publishes updated Climate Action Plan with the goal of contributing to global net-zero emissions by 2050.
AP7’s Climate Action Plan is a summary of AP7’s roadmap to help the companies we invest in adapt their operations to a low-carbon society. AP7 has set new targets for all asset classes. The plan is a central part of AP7’s work to contribute to global net-zero emissions and to manage climate risks that affect both the economy and our savers’ future pensions.
Read more: Climate Action Plan 2025
With AP7’s mandate to manage the default option in the Swedish premium pension system for nearly six million savers, climate change represents a systemic risk that threatens future returns – especially for our youngest savers, who may remain invested with us well into the next century. Our Climate Action Plan aims to drive real emissions reductions and is based on IPCC scenarios and the international Net Zero Investment Framework.
New mandates and stricter requirements
AP7’s approach has continuously evolved since the fund was established 25 years ago. CEO Pål Bergström comments in the Climate Action Plan:
– A clear step forward was taken in 2023 with the launch of a transition portfolio. Over the past year, we have advanced this work further by introducing an internal management mandate that gives us new and expanded opportunities to integrate investment management and active ownership. At the same time, we have raised our expectations of the companies with the greatest climate impact, by limiting investments to those with the highest transition potential and excluding a larger number of firms, writes CEO Pål Bergström.
Targets for every asset class
AP7’s climate goals focus on measuring companies’ transition maturity to achieve real emissions reductions. Over time, the portfolio’s footprint is expected to decrease if underlying companies reduce emissions, as an indicator that progress is being made.
In the updated plan, we specify our targets and integrate the climate perspective even more clearly into asset management. For the first time, we set goals covering our entire portfolio – from equities and bonds to private equity and real estate. This enables us to allocate capital more effectively toward solutions that reduce emissions, support and encourage the companies we invest in to transition, and manage risks.
New this year: corporate bonds
The fixed-income market plays an important role in the green transition. Green bonds already make up a large share of AP7’s fixed-income portfolio – our previous target of at least 50 percent was achieved in 2024, one year ahead of schedule. Since 2025, AP7 has also invested in corporate bonds, providing a broader range of issuers and additional opportunities to deliver real-world impact. By 2030, all companies in the corporate bond portfolio must have adopted comprehensive targets and strategies for emissions reductions and demonstrate that credible transition work has begun.
The transition portfolio
The core idea behind the transition portfolio is to combine active management with active ownership to achieve greater climate transition in companies while also generating positive long-term value. A key criterion for inclusion in the transition portfolio is the company’s financial strength – both to meet AP7’s return requirements and to ensure the company’s ability to carry out the necessary transition. We also assess the conditions for effective active ownership, where factors such as ownership structure, governance, and institutional and cultural aspects can influence the potential for change.
Climate change is also a financial issue
The climate transition is crucial for creating long-term value. Through active ownership, investments in transition companies, and collaboration with other investors, we work to ensure that companies take responsibility and accelerate their climate actions. Our Climate Action Plan is a tool for turning ambition into action – and for contributing to a more sustainable world to retire in.
– To safeguard savers’ interests, we need to be a voice for long-term capital. During 2025, we strengthened our ability to do so by increasing flexibility in asset management and focusing our resources on the companies with the strongest transition potential. In the coming years, we will expande our engagement in the public arena, because that is where systemic risk must be addressed. Even those born today will one day need a good pension, concludes CEO Pål Bergström.
Läs: Klimathandlingsplan 2025
Read more: Climate Action Plan 2025
