Sweden’s state-run Seventh AP Fund (AP7), which manages the premium pensions of nearly six million Swedes, claims to push companies toward sustainability. However, an investigation by Sveriges Radio Ekot reveals that the fund has invested heavily—around 6 billion SEK—in oil giants that are actively expanding fossil fuel production.
AP7’s largest fossil fuel holdings are in Chevron, TotalEnergies, and BP—all of which have major expansion plans for oil and gas extraction. British oil company BP recently abandoned its goal to reduce oil and gas production by 2030. Instead, it plans to launch 10 new oil and gas projects by 2027, increasing output by 250,000 barrels per day. Shareholders were not allowed to vote on this reversal.
Kent Eriksson at Sustainable Finance Lab questions the effectiveness of AP7’s strategy to influence companies from within. He suggests divestment if companies clearly ignore climate goals:
“If you have no effect, maybe it’s time to reconsider staying invested,” he says.
