The credit portfolio is small, AuM less than 10 bn SEK end 2018.
Green Bonds are part of the overall FI portfolio. Green bond MV 16.5 bn SEK end 2018
The ESG/sustainability screening done relates to issuers the same screening results apply for both equity and fixed income, corporate bonds. Exclusions embrace all financial instruments issued by the companies/issuers in question.
AP3 also measure/analyse the carbon footprint for the Credit portfolio (FI Corporate (EV method) and also the Green Bond Impact.
The portfolio managers integrate sustainability issues (risk and opportunities) in their Analytics and investment decisions when it is relevant and material and should be able to explain their decisions.
For example, the investment process ahead an investment in credit can include both screening, can make the manager aware of potential issues, the questions raised are then discussed and evaluated both with the issuer, the company itself, in meetings and with sale side analysts and others. In the cases where there is limited information on the issuer, the manager has to turn directly to the company/issuer and then evaluate the information given to questions regarding ESG issues.