Sustainable Investment Award judges awarded Swedish pension fund AP4 as sovereign wealth fund of the year highlighting its ongoing commitment to sustainability.
In 2023, AP4 updated its thematic sustainability analysis to make investments "that are believed to contribute to and benefit from the transition to a sustainable society" with the aim of making 'good' investments from sustainability and financial standpoints.The update to its thematic sustainability analysis allowed it to make investments of SEK8 billion ($758.3 million) during the year, mainly new commitments in its unlisted portfolio including sustainable infrastructure.
Its thematic analysis update identified the megatrends and ranked them based on their significance and impact for the climate leading up to 2030. These megatrends were then grouped into five main investment themes, which collectively account for around 90% of global emissions, including: decarbonise the energy system; clean up industry; decarbonise transport; protect the biosphere; and, green buildings and infrastructure.
From these five investment themes, AP4 identified investment opportunities based on their attractiveness – defined as market size, growth, regulatory head-/tailwinds – and their investability – which it defines as technological maturity and is linked to relevant megatrends and expected capital inflows.
Niklas Ekvall, chief executive of AP4, said it was "immensely proud and honoured" to receive this year's award, the third year in a row it has been recognised.
"This recognition underscores our commitment to the climate transition and our responsibility as a long-term investor," he said. "Our project on thematic sustainability analysis, particularly focusing on strong sustainability trends, has allowed us to strategically invest in sectors that are crucial for a sustainable future.
"In 2023 alone, our efforts led to significant investments in sustainable infrastructure, including renewable energy, totalling almost SEK8 billion [$758.8 million] and since 2020, AP4 has invested almost SEK37 billion based on these themes."
