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AP4

PRI reporting framework 2018

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Investment policy

SG 01. RI policy and coverage

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

01.1. Indicate if you have an investment policy that covers your responsible investment approach.

01.2. Indicate the components/types and coverage of your policy.

Select all that apply

Policy components/types

Coverage by AUM

01.3. Indicate if the investment policy covers any of the following

01.4. Describe your organisation’s investment principles and overall investment strategy, and how they consider ESG factors and real economy impact.

The AP4’ core values, when taking into account environmental issues and ethical dimensions in their work, involve acting according to the principles on commitment, action, and change, with the purpose of making a difference. The Fund make a difference by proactively pursuing sustainable development in areas that promote high yield in the long term, and by getting involved in companies in which problems have been identified that are judged to be significant and well documented. This constitutes a responsible, ethical code of behaviour as owner.

01.5. Provide a brief description of the key elements, any variations or exceptions to your investment policy that covers your responsible investment approach. [Optional]


SG 02. Publicly available RI policy or guidance documents

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

02.1. Indicate which of your investment policy documents (if any) are publicly available. Provide a URL and an attachment of the document.

URL/Attachment

URL/Attachment

02.2. Indicate if any of your investment policy components are publicly available. Provide URL and an attachment of the document.

URL/Attachment

URL/Attachment

URL/Attachment

URL/Attachment

02.3. Indicate if your organisation’s investment principles, and overall investment strategy is publicly available

02.4. Additional information [Optional].

Regarding Exclusions:

AP4 has, in accordance with their values, excluded companies from its investment universe that are directly involved in the production or marketing of anti-personnel landmines and cluster munitions. Companies can also be divested if they violate the UN Global Compact and the OECD Guidelines for Multinational Enterprises and where dialogue with the companies has not led to improvements.

As part of an annual procedure, The Ethical Council urges all the excluded companies to act in accordance with international conventions.

AP4 has resolved not to invest in tobacco stocks. Mounting long-term risks, including increased regulation, is estimated to negatively affect tobacco companies' valuations in the future. AP4 estimates that tobacco companies over time will underperform andlong term risk becoming so-called ”stranded assets”.


SG 03. Conflicts of interest

03.1. Indicate if your organisation has a policy on managing potential conflicts of interest in the investment process.

03.3. Additional information. [Optional]

The fund basically has one policy covering the investmentprocess that apply to the asset classes.


SG 04. Identifying incidents occurring within portfolios

04.1. Indicate if your organisation has a process for identifying and managing incidents that occur within portfolio companies.

04.2. Describe your process on managing incidents

          This describe the process regarding the global portfolio. For the Swedish we have the same and also more direct contact with the companies. Information from a number of different sources To monitor the occurrence of incidents, the AP Funds and Council use a large number of sources, including the media, trade association and UN bodies. Nevertheless, there is always the risk that individual incidents will be overlooked. Any information that comes to the attention of the Council about such an incident or violation is incorporated into its systematic process. 
Step_in Preventive_dialogue. Reactive_dialogue 
1. Review of the Corporate holdings of the AP-Funds The Council receives systematic business intelligence covering approximately 4,000 companies. Among the sources are media, other investors, trade associations, UN bodies and nongovernmental organisations. 
2. In-depth examination The Council performs a review and overall analysis of companies, industries, problem areas and investor initiatives. Approximately 100–200 companies every year are reviewed further for suspected implication in violation of international conventions. 
3. Choice of companies and dialogue objectives 24 The Council chooses companies and preventive projects. The choice of focus areas does not represent a statement that some areas are more important than others but is simply a deliberate strategy to devote the resources of the Council to issues that are most likely to benefit from them. The Council pursues direct dialogue with a number of companies whose violations of international conventions are evident and well documented. In addition, the Council collaborates with various service providers to dialogue with another hundred companies in response to alleged violations of international conventions. 
4. Dialogue efforts In-depth corporate analyses and possible comparisons with minimum requirements and best practice for the industry in question. Additional pressure, such as collaboration with other investors, submitting proposals to general meetings and voting at general meetings. 
5a. The objecitve of the dialogue has been achieved The dialogue has been concluded The dialogue has been concluded. The company is closely monitored for five years. 
5b. The objective of the dialogue has not been achieved The dialogue continues Unless a dialogue has produced the desired results after four years, the Council recommends that the AP Funds to divest the company. Each AP Fund makes its own divestment decisions. The Council checks once a year to see whether the situation has changed and the company is now operating in compliance with international conventions.
        

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