Sweden’s SEK365.8bn (€34.5bn) public pension fund, AP1 (Första AP-fonden) has reported its highest annual return in a decade of 15.1% as it marks its first year integrating a new sustainability and climate strategy.
Its sister Swedish AP fund AP4 (Fjärde AP-fonden) also posted strong returns today of 21.7%, during a year when it reduced its carbon footprint to 48% lower than the benchmark index.
The performance figures will be a boost to asset owners implementing long-term sustainability strategies across their investments.
AP1’s strong results for 2019 translate into an average annual real return for the past ten years of 6.9%, exceeding the fund’s target of 4%.
Teresa Isele, acting CEO of AP1, said: “We want our sustainability management to improve our risk-adjusted return, while progressively reducing our portfolio’s carbon footprint to become carbon-neutral by 2050.”
Last year, AP1 adopted a new sustainability and climate strategy. …