Key Takeaways
- • Sweden's AP7 government pension fund said on Tuesday, August 4, 2026, that it opposes the U.S. Securities and Exchange Commission's proposal from late May to rescind climate-related risk disclosure rules adopted in 2024 under former President Joe Biden.
- • The AP7 fund warned that removing the rules "would risk impairing investors' ability to assess climate-related financial risks and make well-informed investment decisions," according to its statement.
- • More than 60% of AP7's equity holdings are in North American companies, according to the fund, giving the SEC rule direct relevance to its portfolio.
- • The SEC rule has never taken effect due to legal challenges from industrial lobbies and conservative-leaning states, and the rescission proposal remains subject to public comment before any final decision.
Summary
Sweden's AP7 government pension fund said on Tuesday it opposes a proposal by the U.S. Securities and Exchange Commission (SEC) from late May to scrap regulations requiring companies to disclose their climate-related risks and spending, according to Reuters. The SEC proposed eliminating the rules, which were adopted under former President Joe Biden and have remained dormant. The move is part of a broader government-wide retrenchment of climate policy since President Donald Trump returned to office last year.
In a statement, AP7 argued that "removing the rules would risk impairing investors' ability to assess climate-related financial risks and make well-informed investment decisions." The fund noted that more than 60% of its equity holdings are invested in North American companies, underscoring the relevance of U.S. disclosure standards to its portfolio. AP7 said it uses climate-related information in its investment analysis, stewardship activities, proxy voting, and in assessing physical, regulatory and systemic risks.
The U.S. regulation was adopted in 2024 but has yet to take effect owing to intense legal opposition from industrial lobbies and conservative-leaning states. The SEC proposal is currently subject to public notice and comment before any final decision by the regulator.
In a statement, AP7 argued that "removing the rules would risk impairing investors' ability to assess climate-related financial risks and make well-informed investment decisions." The fund noted that more than 60% of its equity holdings are invested in North American companies, underscoring the relevance of U.S. disclosure standards to its portfolio. AP7 said it uses climate-related information in its investment analysis, stewardship activities, proxy voting, and in assessing physical, regulatory and systemic risks.
The U.S. regulation was adopted in 2024 but has yet to take effect owing to intense legal opposition from industrial lobbies and conservative-leaning states. The SEC proposal is currently subject to public notice and comment before any final decision by the regulator.
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