The climate transition is system-critical, and for long-term investors like the AP Funds, it is important that the companies we own manage climate-related risks, limit their negative climate impact, and contribute to the goals of the Paris Agreement. The scope of the climate transition means that the Council on Ethics needs to prioritize and focus its work. Therefore, the Council on Ethics makes an overall assessment of how and where to direct its efforts to achieve the best possible effect. The work of the Council on Ethics aims to complement and
strengthen the work carried out by each AP Fund.
Priorities for the Council on Ethics
Based on this premise, the Council on Ethics prioritises two areas: the transition of emission-intensive industries and the steel industry specifically, and the mining sector’s management of sustainability challenges in light of the increased need for extraction of critical minerals and metals that enable the climate transition.
The Council on Ethics works on these issues in collaboration with other capital market actors within two different projects: Steel Value Chain Engagement and the Global Investor Commission on Mining 2030.
The transition of emission-intensive industries is particularly important to limit negative climate impacts and to contribute to the goals of the Paris Agreement. At the same time, it is challenging for individual companies to transition their operations on their own, as they are also dependent on the decisions and activities of other actors. Often, innovation and technology that are still under development are required. Therefore, there is a need for investors, companies, suppliers, and customers across the value chain to collaborate to identify measures for a successful transition.
The mining industry has significant sustainability-related risks and effects. At the same time the mining sector is critical to society and crucial in the climate transition. Everything from batteries for electric vehicles to renewable energy production contributes to an increased demand for critical metals and minerals. The Council on Ethics works to ensure that the mining industry meets the increased demand in a sustainable and responsible manner. Previously, the Council on Ethics has been involved in the work to ensure that mining companies globally take responsibility for their mine waste, which has resulted in a global standard for tailings dams.
Ongoing projects
Within the focus area, the Council on Ethics participates in the following projects:
Read more about the projects and progress in the focus area in the Council on Ethics’ annual reports.