Collaborative initiatives

By cooperating with other investors, the Fund has greater scope to influence the companies we invest in. Below is a presentation of some of the formalized collaborative initiatives in which the Fund is involved.

Logga Etikrådet

The Ethical Council, which consists of one member each from the First, Second, Third and Found AP funds, is a good example of how collaboration between several shareholders provides greater leverage in influencing the companies.

The Ethical Council conducts an active dialogue with companies that have violated the international conventions signed by Sweden. The aim is to urge the companies to take measures to ensure that similar incidents are not repeated. Should the dialogues not lead to the desired action, the Ethical Council can recommend that each fund exclude the company from its investment universe.

Logga PRI

The UN’s Principles for Responsible Investment. Six principles to guide organizations that are committed to promoting sustainable investment. Among other things, PRI offers a website, a clearinghouse, where organizations that support the principles can share their experiences and seek support for initiatives.

Logga Hållbart värdeskapande

Together with twelve other Swedish institutional investors, Första AP-fonden has started an initiative to jointly influence listed Swedish companies towards responsible and sustainable long-term value creation. The investor group has sent a survey to the 100 largest companies on the Stockholm Stock Exchange. We ask the companies if they have guidelines that cover central aspects of responsible and sustainable business operations; who the guidelines apply to, how the guidelines have been established and how they are complied with. The companies’ reporting and the boards’ responsibility are also important components of the survey.

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The Carbon Disclosure Project (CDP) is an international initiative to increase corporate awareness of climate change. In the project, which is being driven by 475 international investors, the world’s 3,700 largest corporations provide detailed reports on their strategies for dealing with climate issues and document key performance indicators. CDP is aimed at streamlining the data collection process by having a large number of investors collectively fill out a joint questionnaire on data and reporting of greenhouse gas emissions.

EITI logga

The Extractive Industries Transparency Initiative (EITI) is a global coalition of governments, companies and civil society working together to improve openness and accountable management of revenues from natural resources, especially in the oil industry.

Together with some 80 international investors, the Fund has formally pledged its support to EITI, which signals to countries and companies active in the extractive industries that the shareholders set a value on clear and transparent disclosure of revenues from natural resources. The need for transparency and accountability is especially urgent in countries that are rich in natural resources but have weak governments. By having both the host countries and companies report their revenue and payments, this contributes to greater transparency in society and better conditions for economic control and governance.

Institutional Owners Association

The institutional owners (AP funds, bank-affiliated funds, insurance company-affiliated funds) are all important market players. The fourteen largest institutional investors have formed an association called the “Institutional Owners Association for Regulatory Issues in the Stock Market”, or IÄF. In 2008 and 2009, Första AP-fonden held chairmanship of the IÄF. Collaboration with other institutional owners provides better scope to exert an influence, for example in development of the Swedish Code of Corporate Governance.

ICGN is a global network of institutions with a mission to promote effective standards of corporate governance worldwide. Among other things, the network strives to give shareholders – both small and large – increased rights to vote at general meetings and a stronger position in relation to corporate managements. Första AP-fonden is engaged in several issues, among other things through the ICGN Shareholder Rights Committee.