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AP1

PRI reporting framework 2017

You are in Direct - Listed Equity Active Ownership » Engagement » Overview

Overview

LEA 01. Description of approach to engagement

New selection options have been added to this indicator. Please review your prefilled responses carefully.

01.1. Indicate whether your organisation has a formal engagement policy.

01.2. Indicate what your engagement policy covers:

01.3. Attach or provide a URL to your engagement policy. [Optional]

01.4. Provide a brief overview of your organization’s approach to engagement

Active ownership

The Fund's ownership approach is founded on the conviction that engagement and setting of requirements can make a difference. Första AP-fonden's actions in ESG issues are governed by the ownership policy that is adopted by the Board and defines the Fund's views on key aspects of corporate governance, such as executive compensation, board composition, capital and ownership structures and the opportunities to exercise voting rights.

Thanks to its size and level of commitment, Första AP-fonden has a relatively large influence on the Swedish holdings. The Fund works actively to influence the structure and evaluation of compensation systems and to increase the level of diversity on company boards. This influence takes place through dialogue with the company boards, participation in nominating committees and voting at general shareholder meetings.

In foreign companies, the top priorities are compensatory issues and that the managing director/CEO and board chairman are not the same person. To exert an influence, the Fund votes at general meetings and contacts the companies to explain its views.

01.5. Additional information [optional]

Environmental and social responsibility

In matters related to social and environmental responsibility, the Fund's principles for engagement, action and demands for change are based on the same set of values applied by Swedish Government, in which the central aspects are democracy, the equal value of all people, the freedom and dignity of individuals and sustainable development.

The companies in which the Fund has holdings are expected to give consideration to the environmental impact of their operations. This means being aware and taking relevant measures to reduce the direct and indirect environmental impact of their operations over the entire product life cycle.

The companies should also respect human rights and the International Labour Organization's core conventions. This means among other things that the Fund does not accept discriminatory practices or treatment, forced labour, child labour or restriction of freedom of association. The Fund also expects the companies to ensure safe working condition in both their own production units and those of the company's subcontractors.

Based on these expectations, the Fund conducts discussions with a number of companies, both Swedish and foreign. In environmental and social issues related to foreign companies, Första AP-fonden cooperates with the Second, Third and Fourth AP funds through the Ethical Council.


LEA 02. Reasoning for interaction on ESG issues

02.1. Indicate the method of engagement, giving reasons for the interaction.

Type of engagement

Reason for interaction

Individual/Internal staff engagements

Collaborative engagements

Service provider engagements

02.2. Additional information. [Optional]


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