ESG incorporation strategy (select all that apply)
Describe your organisation’s approach to ESG incorporation and the reasons for choosing the particular strategy/strategies.
ESG overall is integrated part in the active managed portfolios where the different portfolios could have different approaches. For AP4, as a long-term investor, sustainability is a hygienic factor. Our business model is based on sustainability being an express part of our management strategy. We believe companies and businesses managed in a responsible way will contribute to lower risk and higher returns long-term.
If assets are managed using a combination of ESG incorporation strategies, briefly describe how these combinations are used. [Optional]
AP4 use for example broad implementation of risk-mitigation strategies in AP4’s portfolio. AP4 applies low-carbon strategies in global equities, entailing that AP4 reduces its exposure to the companies in each sector that have high CO2 intensity or fossil fuel reserves. Dedicated allocation to investments that benefit from or play a leading role in prioritised areas. AP4 searches actively and has made a number of investments focused on contributing to or benefiting from the shift to a low-carbon economy that is currently taking place. Using ownership dialogues with complanies to discuss issues and to promote ESG. Using ownerships rigts to vote. Participating in different collaborations concerning ESG.