AP7, Stockholm, excluded two more companies from its investment universe following a planned review of allocations.
The pension fund, which had 722.5 billion Swedish kronor ($88.2 billion) in assets as of Dec. 31, reviews its exclusions list in June and December.
It excluded Beijing-based Chinese electricity company Huaneng Power International for acting against the goals of the 2015 Paris Agreement on climate change by expanding its coal operations. Beijing-based Power Construction Corp. of China was excluded for involvement in the violation of environmental norms at the Selous Game Reserve in Tanzania — a World Heritage site, the release said.
AP7's investment across both companies was 31 million kronor, a spokesman said. Assets have been reinvested across other companies in the index.
As of Tuesday, and including the new divestments, the fund excluded 86 companies from its investment universe, a news release said.
The fund adds companies to its exclusion list to exert pressure on companies that violate international standards and encourage them to change their conduct. It views such exclusion lists as an engagement tool, alongside other practices, such as engaging in company dialogue and voting at general meetings.
