Sweden’s AP7 has blacklisted a further five companies, including Tesla, as of 13 June 2025.

Tesla has been blacklisted for violating labour rights in the US while four companies have been excluded due to fossil fuel activities without climate change mitigation plans.

These are: Chord Energy Corporation (USA), Coterra Energy Inc (USA), JSW Energy Limited (India) and PRIO SA (Brazil), all of which have been excluded for large-scale oil extraction without a climate transition plan.

Expanding on its decision to exclude Tesla, AP7 said it was due to “verified violations of labour rights in the United States”.

“Despite years of dialogue with Tesla, including shareholder proposals in conjunction with other investors, the company has not taken sufficient action to address the issues,” AP7 stated.

Its latest decision brings its number of excluded companies from the fund’s investment universe to 114.

Furthermore, AP7 has initiated a review of the climate-related blacklisting process in order to improve its ability to achieve real change.

The fund said that in the past year, it has strengthened its capacity to contribute to the climate transition in the fund's holdings by adding new resources and by integrating ownership governance into the management.

“During the autumn, AP7 will further develop the process for climate exclusion so that it is better harmonised with the work conducted in the transition portfolio. AP7's exclusions based on the Paris Agreement will thus be distinguished from other exclusions and blacklisting that are primarily based on reported incidents,” the fund stated.

“The companies that are currently excluded and blacklisted based on the Paris Agreement will continue to be excluded even after the change. In addition, AP7 will exclude companies where the opportunities to influence a climate transition are deemed to be exhausted or too limited.”

AP7 believes this change will lead to more focused management and corporate governance that “clearly aims to promote sustainable development without compromising savers' returns”.

AP7 expects to provide more information on the climate exclusion in the autumn, with the changes implemented by the next blacklisting exercise in December.

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