AP7 climate action plan

The AP7 Climate Action Plan is a summary of how AP7 plan to contribute to attaining net zero emissions globally by 2050.

Read AP7’s Climate Action plan

One of the major threats to AP7’s mission, to generate returns and provide our savers with a good pension, is that we fail when it comes to limiting the global temperature increase to below 1.5 degrees. With this roadmap, we wish to clarify our intention to be a positive force for attaining net zero emissions by 2050 and describe how we will proceed.

With ownership in more than 3,000 companies around the globe, it lies in our interest that a transition occurs that reduces climate risks in the real economy and not just in our equity portfolio. Within the plan, a number of time-specified goals have been set up for AP7’s active ownership and investments, goals that have been updated during the year prior to this edition of the plan.

Since a few companies in our portfolio account for a large proportion of the climate footprint, we therefore prioritise these in our active ownership work. It is companies that together make up 70 percent of our footprint (scope 1 and 2), and companies with a large climate impact but a low carbon footprint – for example, companies in the fossil industry, companies with increased risk of deforestation and companies that fail when it comes to transparent reporting.

For the first time, we carried out a review of the portfolio based on the Net Zero Investment Framework. This results in a categorisation based on the degree of maturity of the companies’ climate work. By 2025 at the latest, our goal is that 100 percent of the prioritised companies with the highest emissions in our portfolio should be subject to deepened active ownership work. By 2025, at least 50 percent of the companies should conduct a credible transition work and the goal by 2030 is 100 percent. In 2022, 56 percent of these companies were subject to deepened active ownership and 26 percent conducted a credible transition work.

In order to assess how our investments are affected by climate change, we also encourage transparent reporting. AP7 has also been a driving force in the development of the Global Standard on Responsible Corporate Climate Lobbying – a standard for analysis and reporting of companies’ climate lobbying. During the year we have applied the global standard to our own operations to increasing our own transparency and identifying areas for improvement and more in-depth work.

The Climate Action Plan is based on the scenarios of the UN Climate Panel, IPCC, and the Net Zero Roadmap 2050 of the International Energy Agency, IEA.

Read AP7’s Climate Action plan

AP7 Public policy dialogue and climate lobbying