In order to stay below the 2 degree threshold of global warming, action is required from all industries - including pension funds such as AP4, one of a group of five state-owned pension funds in Sweden.
As of June 2014, the CO2 footprint from the selected portfolios of listed shares of the $39-billion strong AP4's was 29% lower than the industry benchmark. 80% of the companies in AP4's listed equity portfolio report their carbon emissions through annual and sustainability reports or via the Carbon Disclosure Project, CDP. With some data validation and adjustments, this facilitates the possibility of establishing an accurate carbon footprint. The carbon emissions of the remaining 20% of the companies in the equity portfolio of AP4 have been estimated with the help of South Pole Carbon, who was commissioned to assist with the evaluation work. South Pole Carbon has also compiled AP4's carbon footprint. In the long term and during the transition to an economy that is less dependent on greenhouse gas emissions, low carbon strategies have been seen to significantly contribute to a better return on AP4's assets.