9. Environment and ethics
A farsighted and positive attitude to environmental and ethical issues enhances the value of companies. For the individual company, this involves acting in compliance with regulations, conventions and legislation, as well as acting proactively to promote a sound relationship with society as a whole.
The Second AP Fund is positive to the idea that companies in which it invests subscribe to the United Nations Global Compact and actively implement its principles, incorporating them as a natural part of their day-to-day business operations. These companies shall also observe the OECD’s Guidelines for Multinational Enterprises and principles for Corporate Governance.
The Second AP Fund expects companies to act responsibly in observing international conventions. The conventions referred to in particular are the United Nations Declaration on Human Rights, the United Nations Convention on the Rights of the Child, the Rio Declaration on Environment and Development, the International Labour Organization’s ‘Core Conventions’ and the conventions against bribery and corruption on which the Global Compact and OECD’s Guidelines are based. This applies whether the countries in which the companies are active have signed the conventions or have weaker human rights legislation.
The companies’ boards of directors shall ensure that a policy or Code of Conduct is drawn up, which states their position on the environment and ethics, both with respect to the company in question and to other key parties, such as subcontractors. The company shall establish explicit goals, as well as providing the necessary resources and an action plan for implementing and sustaining the stated policy. Companies shall provide a report of this work at least once a year.
The boards of directors shall ensure not only the competence but the diversity of their companies’ executive managements.