AP4 - Sovereign wealth fund of the year 2024
Sustainable Investment Award, awarded AP4 as Sovereign Wealth Fund of the year highlighting our long term commitment to sustainability.
Sustainable Investment Award, awarded AP4 as Sovereign Wealth Fund of the year highlighting our long term commitment to sustainability.
AP4 integrates climate strategies for all investments in the global equity portfolio. These strategies are tailored to the conditions of the different sectors and sub-portfolios. The aim is to reduce the climate risks of the portfolios, contribute to the climate transition and provide a good return to the pension system.
Biodiversity loss is due to the overconsumption of natural capital and the destruction of the Earth’s resources, which restricts economic growth. The negative impact of this has serious consequences for both people and the environment.
AP4 continuously analyses sustainability trends and seeks out investment opportunities that are expected to contribute to, and benefit from, the transition in the long term and which also provide a good expected return. Investments with a specific focus on the climate transition are developing at a rapid rate and this year’s thematic analysis has provided AP4 with the latest knowledge and refined tools.
The work of the Council on Ethics during 2023 has in large part focused on the new organisation with a new strategy, and intensive work with the selected focus areas. Of many important sustainability topics, five focus areas have been prioritised: Antimicrobial resistance, Child labour and forced labour, Climate, Big tech and human rights, and Water.
The First-Fourth AP Funds performed well in 2023 and strengthened the financial position of the income pension system by SEK 142 billion. The result corresponds to an average return of 8.1 per cent. At year-end, the four funds managed total assets of SEK 1,880 billion. The net payments of the AP Funds to the pension system totalled SEK 19 billion. This contributes strongly to the stability of the income pension system and its mission to maximise benefits for current and future pensioners.
The Fourth Swedish National Pension Fund (AP4) reports a good return of 9.6 per cent after costs for the full year 2023. With a profit of SEK 43.9 billion, fund capital increased to SEK 499.6 billion after SEK 4.8 billion was transferred net to the pension system during the year. The portfolio's carbon dioxide emissions decreased by 11 per cent compared to 2022 and AP4 has reduced emissions by a total of 65 per cent since 2010. AP4 takes responsibility as owner and served on 56 nomination committees during the year.