Since 2017, AP7 has used the Paris Agreement as a basis for exclusions. The application has since been developed progressively. The fund is now taking another step and excluding companies that have a high risk of failing in the climate transition.
After the Paris Agreement, several years followed with increased sustainability ambitions in politics, business, and the financial sector. AP7 intensified its ownership engagement, international collaborations, and norm development. In recent years, however, developments have shifted direction, and the world has become more conflict-ridden and unpredictable. This brings new sustainability challenges for both investments and ownership engagement. Therefore, AP7 is expanding the basis for excluding companies with particularly high and difficult-to-assess sustainability risks.
For companies with significant climate impact, a stricter selection will mean that more companies are excluded and resources are concentrated on fewer companies with greater transition potential. This improves the conditions for a more active management model in the internal transition portfolio developed during the year.
For norm-based exclusion (human rights, labor rights, environment, anti-corruption), the framework will be implemented gradually over the coming years. Initially, the focus will be on risks of human rights violations in conflict areas, after which it will be broadened to other issues.
“We need more tools to manage risks that are becoming increasingly complex and unpredictable. In addition, we want to be able to allocate more resources to the opportunities that exist,” says Head of Communications Johan Florén.
Read more about AP7’s climate work in: AP7 Climate Action Plan 2025
Exclusions
On 8 December, the following companies were excluded from AP7’s investments.
Read more: AP7 new excluded companies
Read more: AP7 Exclusion list December 2025
Criteria for companies with significant climate impact
Oil companies with significant climate impact are defined as companies that meet any of the following criteria:
- Produce at least 50 million barrels of oil per year
- Derive at least 50% of their revenues from production and/or exploration of oil or gas
- Derive at least 5% of their revenues from oil sands
- Derive at least 5% of their revenues from Arctic oil extraction
Coal companies with significant climate impact are defined as companies that meet any of the following criteria:
- Produce at least 5 million tonnes of thermal coal per year
- Derive at least 25% of their revenues from the extraction and production of thermal coal
- Have at least 5 GWh of installed capacity for electricity production from thermal coal
Investments in companies with significant climate impact may occur within the transition portfolio when AP7 can identify clear transition potential; otherwise, the companies are excluded.
For more information, please contact:
Johan Florén, Communications Officer AP7
johan.floren@ap7.se, +46 70-555 80 58