The Council on Ethics for the Swedish National Pension Funds sums up a year of active engagement. The proactive work addresses important systemic issues, including antimicrobial resistance and the extraction of critical metals and minerals for the green transition. The outcomes during 2024 also show continued progress in the reactive company dialogues.
The Council on Ethics for the Swedish National Pension Funds is an important part of the AP Funds' sustainability strategies and in 2024 the Council on Ethics welcomed two sustainability specialists, which has resulted in a significant increase in resources. During the year, the Council on Ethics has thus intensified its engagement work, particularly within its five proactive focus areas.
Åsa Mossberg, Chair, Council on Ethics for the Swedish National Pension Funds during 2024:“With increased resources, the Council on Ethics has the capacity to further strengthen us AP Funds and constitute an important part of the AP Funds’ sustainability strategies. The Council on Ethics is particularly important for the AP Funds in complex sustainability areas, where collaborating is an advantage.”
Intensified engagement work with a fully-staffed Council on Ethics
Jenny Gustafsson, Executive Director, Council on Ethics for the Swedish National Pension Funds: “During 2024, the new organisation of the Council on Ethics was completed with two additional members of staff. This has enabled us to increase the pace of the Council on Ethics’ work for the long term. The role of the Council on Ethics is both to manage significant sustainability risks for the AP Funds and to support them in sustainability areas of particular complexity.”
Jenny Gustafsson, Executive Director, Council on Ethics for the Swedish National Pension Funds:
“One of the most important tasks of the Council of Ethics is to act on signals of breaches of international norms and conventions and engage in dialogue with companies to encourage them to a more systematic approach to sustainability. During 2024, dialogues with eight companies were resolved as the companies have achieved the objectives that had been set.”
During 2024, the Council on Ethics screened just over 3,000 foreign companies to identify any serious incidents or violations. Companies identified in the screening are subject to the Council on Ethics’ reactive analysis and engagement work. This work is based on the international conventions and frameworks that Sweden endorses. A total of 77 reactive dialogues were conducted during the year. Reactive dialogues with eight companies were resolved as the companies have achieved the objectives set.
In individual cases, the dialogue may not lead to the desired outcome, and the Council on Ethics may recommend that the AP Funds exclude the company. One company has been recommended for exclusion in 2024.
Of many important sustainability areas, five focus areas have been prioritised in the Council on Ethics’ proactive work: Antimicrobial resistance, Child labour and forced labour, Climate transition, Tech companies and human rights, and Water.
Jenny Gustafsson, Executive Director, Council on Ethics for the Swedish National Pension Funds:
“As two sustainability specialists joined the Council of Ethics in January of 2024, we have been able to further develop the various projects and company dialogues in our five focus areas. This has provided us with further opportunities to deepen the expertise, conduct more dialogues and share our experiences. During 2024, we have been involved in ten projects within our proactive work.”
“The proactive work provides an opportunity to promote long-term positive change in areas which constitute sustainability risks in the AP Funds’ portfolios. Prioritising and focusing our work in these projects also makes it possible to formulate clear expectations on companies related to sustainability issues which may be considered less mature, such as antimicrobial resistance (AMR).”
2024 in brief:
- 3,307 companies screened for involvement in breaches of international norms
- 77 reactive dialogues carried out during the year
- 8 companies successfully met the objectives of the dialogues, and the dialogues could be resolved
- 1 company recommended for exclusion
- 10 projects in five proactive focus areas
Download the Swedish version of the Council on Ethics 2024 Annual Report. The English version will be available later this month.
For more information:
- Jenny Gustafsson, Executive Director, Council on Ethics, jenny.gustafsson@etikradet.se
- Åsa Mossberg, Chair of the Council on Ethics during 2024, asa.mossberg@ap2.se
The Council on Ethics for the Swedish National Pension Funds (AP Funds)
The Council on Ethics for the AP Funds is a collaboration between the First, Second, Third, and Fourth Swedish National Pension Funds (AP Funds). The role of the Council on Ethics is to encourage companies to make improvements in sustainability and to support the AP Funds in complex sustainability areas.