Swedish pension fund AP7 has published its updated Climate Action Plan, which outlines how it will contribute to achieving net-zero carbon emissions by 2050.

AP7 noted that with ownership in more than 3,000 companies around the world, it is within its interest that a transition that reduces climate risk occurs, and not just in its equity portfolio.

In the updated plan, several time-specified goals have been set up for AP7’s active ownership and investments.

These goals were updated during the year prior to the publication.

According to AP7, just 4 per cent of the companies in its total portfolio, corresponding to 10 per cent of the managed capital, account for 70 per cent of the carbon dioxide emissions.

These companies have been prioritised in the pension fund’s active ownership.

By 2025 at the latest, AP7’s goal is that 100 per cent of the prioritised companies will be subject to ‘deepened’ active ownership work.

It is also targeting that 50 per cent of the companies conduct credible transition work by 2025, with this rising to 100 per cent by 2030.

In 2022, 56 per cent of these companies were subject to deepened active ownership and 26 per cent conducted credible transition work.

“In order to assess how our investments are affected by climate change, we also encourage transparent reporting,” the pension fund said.

“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.”

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