16 March, 2022

Sustainability goals for the portfolio

For almost ten years now, AP6’s Board of Directors has been setting annual specific sustainability goals for AP6, for both the portfolio and the organization. The sustainability goals are reviewed annually. In 2021, a major review of the portfolio’s objectives was carried out. The background was the changes that have taken place since the new strategy was introduced almost ten years ago, as well as the rapid and extensive development of sustainability work in general and in private equity specifically. The goals adopted for 2022 and onwards are categorized into five areas and are based on AP6’s role as an indirect investor in private equity via a large number of fund commitments and co-investments. Key figures and target fulfillment for the updated targets will be reported for 2022.

ESG integration
Within the area, there are already goals regarding governing documents as well as development and improvement of the sustainability work in the portfolio. An important goal is for the development in the fund portfolio to have a positive trend. This is measured based on the annual change in the ESG evaluation.

The previous goal of sustainability reporting was supplemented with the goal of reporting on sustainability key figures at company level according to the relevant standard.

More concrete sub-goals have been adopted regarding climate, in order to operationalize the visionary goal from 2020 of aligning the portfolio with the Paris Agreement. In addition to previous reporting targets, the equivalent of 65% of invested capital must have set climate targets or committed to setting climate targets in line with the Paris Agreement by 2025, and 100% by 2040.

Gender equality and diversity
Already in 2020, the target for the area was developed with the adoption of quantitative targets for the portfolio. The goal is to achieve gender equality for the fund managers who manage AP6’s capital, at management level by 2030, and in investment teams by 2025. Interim goals for achieving the long-term goals are a 10% annual increase over the previous year. Gender equality is measured based on distribution and is defined as at least 40% representation of the underrepresented group (women or men).

Human Rights
All investments are examined with regard to human rights. In order to increase the focus on identifying risks to human rights in different activities, industries and geographies and to develop relevant sub-goals to follow up at portfolio level, human rights have been added as an additional focus area (in addition to climate and gender equality and diversity). A survey of how international frameworks for human rights are used in the portfolio will be carried out in 2022 with the aim of developing relevant sub-goals.

Read more about the sustainability work in the Annual Report