AP7, Stockholm, divested 273 million Swedish kronor ($32 million) from its equity investments linked to 10 coal producers, a spokesman confirmed.
Following its latest six-month review of exclusions, the fund divested its holdings in China Resources Power Holdings Co., Coal India, Exxaro Resources, Inner Mongolia Yitai Coal Co., Korea Electric Power Corp., PT Adaro Energy Tbk, SDIC Power Holding Co., Shaanxi Coal Industry Co., Washington H. Soul Pattinson and Yanzhou Coal Mining Co. The divestments were made because companies continue to expand in coal production and coal power, the spokesman said.
The 470 billion kronor fund integrated the 2015 Paris Agreement into its investment process by first excluding companies in 2017, while developing its voting and engagement practices further since.
"During 2020 we have developed the methodology around blacklisting and will from now on blacklist companies with massive investments in coal expansions. Scientific studies show that the single most important measure for mitigating climate change is to stop using coal as a source of energy," the spokesman said.
As part of the six-month review, the fund also excluded Booz Allen Hamilton Holdings due to its involvement in nuclear weapons.
