AP3 screens the portfolio using reliable external data from the MSCI ESG Manager including Carbon Metrics, the Council on Ethics of the AP funds and Global Engagement Services (GES now Sustainalytics),Trucost, Bloomberg and other sources. It is important to remember to check and /or question the data as it might be wrong or outdated. There is sometimes a a non negligible difference, changes that the company has done is not yet in the ESG information.
One important objective is to identify and evaluate cases where companies are acting in violation of international treaties and conventions.
Information about companies excluded from the investment universe after board decision is available on the website, and will be updated on a yearly basis. The criteria will vary among different sectors, different degree of relevance and to some extent over time.The screening done can be both negative and positive for a manager of an active mandate i.e.. depending on the portfolio composition and strategy.
In addition to this screening with public exclusion from the investment universe AP3 regularly screen and analyses the portfolio as part of the risk management. These screenings can lead to active decisions not to be invested in/have exposure to some companies, the absolute majority of these decisions concern small cap companies.
AP3 is a public entity, all Swedes are "clients" the management and principles arr reported on an annual basis in the Annual Report. if there are bigger changes a press release may be issued. The Finance Department evaluate the AP funds once a year and use then an external party in addition to the Funds own reporting.