The largest of Sweden’s national pensions buffer funds, AP7 has, following a planned review of allocations, excluded two Chinese firms, Pension&Investments reports.
AP7 reviews the fund’s exclusions list twice a year in June and December and this time around the Beijing-based Huaneng Power International and Power Construction Corp. of China were added.
According to a company statement, Huaneng Power International was excluded for acting against the goals of the 2015 Paris Agreement on climate change by expanding its coal operations and Power Construction Corp. of China was excluded for involvement in the violation of environmental norms at the Selous Game Reserve in Tanzania which is a World Heritage site.
AP7 put companies on the fund’s exclusion list to add pressure on companies that violate international standards and encourage them to change their conduct. In total, the fund excluded 86 companies from its investment universe this time.