Our stakeholders

AP4’s mission involves continuous dialogue and collaboration with a number of different stakeholder groups, which in various ways both influence and are impacted by the AP Funds’ operations.

Engaging in dialogue with the stakeholders provides an understanding of the AP Funds' mission and operations, our returns and our sustainability work. For increased transparency in reporting and communication, it is therefore important to take advantage of stakeholders' views on these areas and most important issues.

Risk analysis

To complement the stakeholder dialogue and to gain a better understanding of risk areas that may impact on AP4, a risk analysis is carried out within the asset management to identify and evaluate significant sustainability risks in the investment portfolio. This risk analysis is based on the standards and risk areas contained in the ESRS and applies the principle of double materiality, i.e. impact materiality and financial materiality.

Impact materiality

Impact materiality describes how the activities of the portfolio companies may have a negative impact on people and the environment. Risks relating to the portfolios's impact were assessed as being greatest in:

  • climate change
  • Business ethics
  • Labour in the value chain
  • biodiversity

Financial materiality

Financial materiality describes how people and the Environment may affect the financial position of the companies. A concentration of sustainability risks was identified within the energy, raw materials, power and industry sectors. Financial risks for the portfolio were assessed as being greatest within:

  • climate change
  • biodiversity
  • Consumer behaviour
  • Business ethics

AP4's investment process includes identifying and managing macroeconomic, financial and sustainability-related risks and opportunities that may affect the portfolio's long-term development.