Twice a year, the Council on Ethics screens just over 3,000 foreign companies within the AP Funds’ global listed equity and credit portfolios to identify any violations of the international conventions and frameworks that Sweden supports. If a violation is identified, the Council on Ethics initiates a dialogue with the company.
The dialogues should result in the companies addressing the issues – including through remedy to those affected – and minimise the risk of them recurring. The Council on Ethics focuses on companies improving their policies, implementation and transparency.
A dialogue usually lasts for several years, as it can take time to address and mitigate incidents. If a dialogue does not lead to the outcome that the Council on Ethics considers reasonable, the Council on Ethics may recommend the AP Funds to exclude the company. However, this is a last resort that is always preceded by a systematic process of escalation in which the Council on Ethics explores further opportunities to influence the company to improve. The Council on Ethics uses service providers for both analysis and dialogue. The Council on Ethics always makes its own assessment and, if necessary, conducts its own dialogues.
More information and statistics about the reactive work can be found in the Council on Ethics' published annual reports.