AP1, Stockholm, has cut $400 million in fossil fuel-linked investments from its internally managed portfolios, a spokeswoman said.
The fund manages Swedish, European and U.S. equities internally. Further information on how the divestment is split could not immediately be learned.
The fund also works with external managers for small-cap developed markets equities and emerging markets equities. In efforts to divest its portfolios in full, AP1 is now working with money managers to eliminate exposure to fossil fuels in externally managed portfolios. The value of assets exposed to fossil fuels could not immediately be learned.
The 352 billion Swedish kronor ($37.4 billion) pension fund's board made a decision to disinvest from holdings of fossil fuel-linked companies in December, following a conclusion that a transition toward a low-carbon economy creates "a substantial uncertainty" for these companies.
"All our internally managed mandates have been divested. We are now working together with our external managers to ensure a responsible transition of the remaining positions, which is likely to take some more time," the spokeswoman said in an emailed comment.
"Divesting from fossil fuels is an efficient way for the fund to manage the financial risk associated with a transition in line with the Paris Agreement," Urban Hansson Brusewitz, chairman of AP1, said in a news release, Monday. "Further, we have decided to develop a roadmap and measurable targets towards reaching a carbon neutral portfolio by 2050."
