AP7 Drops Investments in Some Chinese and Indian Energy Companies over Transition Plan Issues

Posted on 06/04/2023

Swedish buffer fund AP7 seeks to divest from companies that do not embrace energy transition plans set by the United Nations’ Paris-aligned goals. AP7 sold investments in six Chinese companies and one Indian company due to not having credible energy transition plans in the eyes of them. India’s Adani Power as well as CITIC and Inner Mongolia Dian Tou Energy were banned due to their involvement in coal power production. In addition, four Chinese companies were banned due to their involvement in the extraction of thermal coal. The companies were: Jizhong Energy Resources Co., Pingdingshan Tianan Coal Mining Co., Shan Xi Hua Yang Group New Energy Co., and Huaibei Mining Holdings Co.

AP7 had investments worth of 237 million Swedish kronor before it sold them effective June 1, 2023.

AP7’s blacklist is revised annually in June and in December. A total of 107 companies are currently blacklisted and excluded from the fund’s investment universe.

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