28 November, 2018

Carbon Footprint – Portfolio

AP6 has measured the carbon footprint for its unlisted investments since 2014. Carbon footprint is one of the tools that AP6 uses for demanding higher transparency regarding carbon emissions of unlisted companies. By demanding higher transparency in this area, AP6 also helps raise awareness of the importance of climate change in a broader sense in the PE sector. AP6 reports the carbon footprint of its portfolio based on information on the carbon emissions of the portfolio compa-nies together with estimated emissions. It‘s the same method used in prior years. It is calculated as of year-end, using the latest available data on emissions, in accordance with an agreement with the other Swedish AP Funds. AP6‘s carbon footprint for 2018 cor-responds to approximately 30 percent of the carbon footprint from an equally large investment as per a global index for listed companies. This is partially explained by the value for “carbon intensity – weighted average.”
The carbon intensity of portfolio companies is simply low, regardless of ownership share. In spite of higher requirements from both PE firms and society at large for gathering carbon emissions data, few companies measure and report this information. AP6 appreciates that several of AP6‘s fund managers systematically gathers carbon emission data from their portfolio companies. However, the information is of varying quality and does not always reach AP6.