The four Swedish government buffer funds Första AP-fonden (AP1), AP2 (Andra AP-fonden), AP3 (Tredje AP-fonden) and Fjärde AP-fonden (AP4) have signed up a group of environmental, social and governance (ESG) advisors.
They have variously signed agreements with Ethix SRI Advisors, GES Investment Services, MSCI, Northwest & Ethical Investments and Sustainalytics. The three-year appointments follow a combined procurement announced in June this year that was coordinated by AP1.
All four have all signed up Ethix, GES, Northwest & Ethical and Sustainalytics while AP1 has additionally tapped MSCI for company analysis and sector/themeanalysis. The contracts will cover systematic screening of companies, analysis of ESG issues, sector and theme analysis and advice and support. Although the funds, worth a combined SEK811bn, coordinate their work on environmental and ethical issues through a joint Ethical Council, they do not share a common view on integrating ESG into their separate investment strategies.
Financial terms were not disclosed.
Earlier this month AP1 announced that it had filed a lawsuit against the Bank of New York Mellon in London the Commercial Court in London over alleged investment losses of around $35.5m.
Link to Ethical Council announcement