Swedish pension fund Första AP-fonden (AP1) managed to cut its carbon footprint across its equity portfolio by 46% through the course of last year, it has reported.
This follows the board’s decision to stop investing in fossil fuel businesses, which was implemented during 2020.
The move also led to a reduction in financial risk, according to the firm.
Chief executive, Kristin Magnusson, said: “We have also set ourselves the goal to considerably increase our share of dedicated investments which serve to promote the UN’s Sustainable Development Goals.”
Despite AP1’s overall positive results for 2020, which saw its assets under management increase from 365.8 billion Swedish krona to 392.6 billion, Magnusson highlighted the challenges ahead linked to ongoing uncertainty in global financial markets
The effects of the pandemic are also set to linger, she said. “How monetary and fiscal stimulus measures play out, together with the impact of geopolitical tensions, will be of crucial importance to markets, corporates and international trade going forward.”
Magnusson added that responsible investing and an active advocacy agenda will continue to help the fund “produce both financials returns and shape our contribution to the sustainable transition of society”.
© 2021 funds Europe
