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28 November, 2018 Ulf Lindqvist

Requirements and expectations

 

One fundamental expectation on a state-owned pension fund such as AP6 is for operations to be run in accordance with the Sixth Swedish National Pension (AP) Fund Act (2000:193), where the goals for investing activities are defined. Besides this, is the owner’s desire for pension fund assets to be managed in a sustainable way. Other stakeholders in society have a variety of expectations too. AP6 has engaged with its stakeholders in dialog to find out what issues matter to them the most. It has identified and interviewed relevant stakeholders. They include pensioner organizations, students, the Ministry of Finance, the Riksdag Pension Group and various trade associations. Other stakeholders are the funds and companies that AP6 has invested in and AP6’s own employees. Society is of course another broad category of stakeholder that includes both current and future pensioners. In order to also consider aspects that lack an actual representative, AP6 created another category called Nature and Ecosystems.

The results from AP6’s enhanced stakeholder engagement can be divided into two categories. One has to do with fundamental requirements and expectations, such as AP6, in its role as pension fund manager, delivering a return. The other category covers a wide range of topics, such as demands and points of view on investing activities and sustainability efforts along with the desire for information about AP6 to be transparent and easily accessible to third parties.

 

 

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Model for meeting requirements and expectations

Based on the results from its enhanced stakeholder engagement, AP6’s Board of Directors and senior executives have drawn up a materiality analysis. It prioritizes the most important issues that AP6 must deal with. Here, it can be seen that a basic prerequisite for the AP6’s eligibility is the ability to generate returns to retirees and to have public confidence.

Priorities based on the materiality analysis:

  • Ensuring the expertise and professionalism of employees
  • Disciplined, systematic value creation within the scope of a clear investment strategy
  • Active efforts with responsible investments, using a wide sustainability perspective that is based on human rights, labor rights, the environment and anti-corruption
  • Good business ethics and morals
  • Clear communication and easily accessible information about AP6
  • Openness and transparency

Read more about Stakeholder Engagement and the Materiality Analysis in the Sixth AP Fund Annual Report 2017.