Stockholm, November 7, 2025 — The Seventh Swedish National Pension Fund (AP7), which manages the premium pension savings of more than six million Swedes, is facing mounting criticism for its continued multibillion-krona exposure to some of the world’s most carbon-intensive fossil fuel producers — including companies blacklisted by major financial institutions and under growing environmental scrutiny.
A Deepening Climate Contradiction
An investigation by Ekot (Sveriges Radio), supported by independent analysis from the Fair Finance Guide, reveals that AP7 holds SEK 17.3 billion (≈ $1.6 billion / €1.5 billion) in 42 of the world’s largest coal, oil, and gas companies.
Despite global pledges to curb fossil expansion, AP7 has increased its stakes in several firms explicitly excluded by banks like HSBC, Citigroup, and Nordea over ESG violations — among them Brazil’s Petrobras and Norway’s Equinor.
High-Risk Bets in a Heating World
- Petrobras — In September 2025, Brazil’s state-owned oil giant received final approval to drill near the mouth of the Amazon River, a move condemned by the UN, Indigenous groups, and scientists. AP7 nonetheless raised its stake by 18% in Q1 2025.
- Equinor — While promising “net-zero by 2050,” Equinor still devotes over 60% of its capital spending to new fossil projects. AP7’s SEK 2.1 billion position has grown 12% since 2023.
- Coal — The fund maintains direct holdings in BHP, PT Adaro Energy, and others, despite the International Energy Agency’s warning that no new coal development aligns with the 1.5°C target.
Public Opinion Out of Step With Pension Policy
Swedes are clear on the issue.
A November 2025 Novus survey found 72% view climate change as a very or extremely serious threat. A separate YouGov poll showed 63% believe their pension savings should not support fossil fuel expansion.
Yet most savers — more than 85% — are unaware that AP7 invests heavily in fossil producers, since it operates as the default pension option.
Jakob König, Head of Research at the Fair Finance Guide, calls it a breach of trust:
“Swedes are making climate-smart choices in their lives, but their pensions fund Amazon drilling and coal expansion. That’s not only a moral failure — it’s a governance one.”
AP7’s Defense: ‘Active Ownership’
AP7’s acting communications director, Mikael Lindh Hök, insists the fund’s approach of active ownership—engagement rather than divestment—drives more real-world change.
“We vote, we engage, we push for transition plans. When companies refuse, as we did with Shell in 2023, we divest,” he said.
But the record tells a different story. Since 2020, AP7 has sold shares in only three fossil fuel firms—all already sanctioned by regulators. Over the same period, its top 10 fossil holdings have increased emissions by 11%, according to Climate Action 100+.
The fund also offers little transparency. It does not publish voting records or engagement outcomes, unlike Norway’s Government Pension Fund Global (GPFG), which releases detailed annual reports on every engagement.
Global Momentum for Divestment
Worldwide, the investment tide is shifting. In 2024 alone, the ten largest asset managers—including BlackRock, Vanguard, and Amundi—pulled more than $120 billion from coal and oil sands.
The EU’s Sustainable Finance Disclosure Regulation now requires funds to prove they “do no significant harm” — a standard AP7 has yet to meet.
Closer to home, Norway’s GPFG has excluded 168 fossil companies since 2020, Denmark’s ATP has tightened coal limits, and Sweden’s AP2 bans firms earning more than 5% of revenue from thermal coal.
AP7 has no such threshold, and its fossil exposure has risen 22% since 2021.
What Needs to Change
Three immediate steps could restore credibility and align the fund with climate science:
- Full Transparency — Publish voting records, engagement results, and carbon intensity metrics in line with TCFD standards.
- Policy Alignment — Adopt a clear fossil divestment timeline: exit coal by 2030, cap oil and gas exposure per the IEA Net Zero Scenario.
- Public Accountability — As the default pension choice for six million Swedes, AP7 should face a public consultation and ESG review by Q2 2026.
The Cost of Delay
AP7 is more than a fund. It represents Sweden’s collective financial future. With temperatures on track to exceed 2.7°C this century, continuing to bankroll fossil expansion is not just ethically indefensible — it’s economically short-sighted.
Pensions are meant to secure retirement, not underwrite planetary risk. Unless AP7 adapts, it risks losing public trust, regulatory backing, and long-term returns alike.
Data Snapshot (Q3 2025)
| Metric | Value |
| Total Assets | SEK 1.1 trillion ($103 billion) |
| Fossil Fuel Holdings | SEK 17.3 billion ($1.6 billion) |
| Share of Portfolio | 1.6% |
| Top Holdings | Petrobras, Equinor, BHP |
| Carbon Intensity | 3× global equity average |
| Fossil Divestments Since 2020 | 3 |
| Public Concern About Climate | 72% |
| Support for Fossil Divestment | 63% |
Reporting based on AP7’s public disclosures, Ekot’s 2025 investigation, Fair Finance Guide analysis, IEA and Climate Action 100+ data, and interviews with ESG experts. AP7 was invited to comment but declined to share engagement documentation.
Produced with the Nordic Sustainable Finance Initiative and the Stockholm School of Economics Institute for Sustainability.
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