AP7, Stockholm, hired Legal & General Investment Management to manage an undisclosed active equity allocation, a spokesman confirmed.
The 900 billion Swedish kronor ($85.5 billion) pension fund and LGIM entered into a partnership to jointly develop a climate-transition strategy.
The strategy will identify and invest in companies that are "climate laggards" that through active ownership have the potential to align with the goals of the Paris Agreement.
LGIM was appointed by AP7 for the first time.
"We had a very thorough process to find the right partner to team up with. Finding LGIM was a meeting of minds," AP7 CEO Richard Grottheim said in a new release Tuesday. "We look forward to developing this innovative solution together in the coming years."
