The second Swedish pension buffer fund, AP2, has reduced its portfolio’s greenhouse gas emissions by 38 per cent, compared with the 2019 base year, according to the fund’s 2025 Sustainability Report.

This exceeds its own target of cutting emissions by at least 35 per cent by 2025.

Among key sustainability successes in the report, AP2 confirmed that its fund does not contribute to deforestation, thanks to the implementation of a structured process to identify and manage deforestation risks in the portfolio.

It also said that it had incorporated the UN Guiding Principles of Business and Human Rights into its asset management strategy in 2025, strengthening work in conflict-affected areas and high-risk zones, and focusing on living wages and supply chains in certain sectors.

AP2 CEO, Eva Halvarsson, said: “Sustainability is an integral part of our mission and a prerequisite for delivering strong long-term returns and for contributing to a good pension in a broader sense.”

Halvarsson added: “Over the year, we have seen that the uncertain environment creates a greater need to work actively to understand and manage increasing risks for both people and the environment.

"At the same time, as political currents move toward greater short-termism and begin to question the overall scientific consensus, it is important that we continue to act with a long-term perspective.”

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