Massive insto investor completely decarbonises

Sweden's largest pension fund has made a commitment to low-carbon investing by reducing its exposure to climate risk. 

The Fourth Swedish National Pension Fund (AP4), has allocated 21.8 per cent ($4.2 billion) to its global equity portfolio to low-carbon strategies, and has stated that it is prepared to tackle its long-term target to completely decarbonise its entire global equity portfolio by 2020. 

The investment committee is using low carbon indices set up by MSCI as its benchmarks for the strategies. AP4 will benchmark its regional equity portfolios against MSCI Low Carbon Leaders Indexes in Europe, North America, the Pacific, and Emerging Markets.