Swedish AP Pension Funds Face Backlash Over Gaza-Linked Investments
Swedish AP pension funds under scrutiny for significant investments in companies linked to human rights violations in Gaza.
Key Points
- • AP funds have invested billions in companies accused of violations in Gaza.
- • Rolls Royce and Palantir are key companies involved in these investments.
- • AP7's investment in Palantir increased significantly from 389 million SEK to 4.8 billion SEK in less than two years.
- • Challenges in verifying information from conflict zones complicate compliance with ethical investment guidelines.
Swedish AP pension funds are caught in controversy after reports reveal billions of kronor invested in companies accused by the United Nations of violating international law and human rights in Gaza. Among the implicated companies is Rolls Royce, known for producing engines for Israeli tanks, which is held by four of the AP funds. The scandal highlights the ethical dilemmas facing pension fund management as scrutiny intensifies on investment practices linked to global conflict zones.
Another notable investment from the AP funds is in Palantir, a US technology firm that collaborates closely with Israeli military operations. Reports indicate that the investment by AP7 in Palantir has surged, with its stake valued at approximately 4.8 billion SEK in mid-August 2025, a drastic increase from a mere 389 million SEK recorded in October 2023. The considerable financial growth in such companies raises questions about the funds' commitment to their own ethical guidelines, which discourage investments in businesses linked to human rights abuses.
Concerned parties point out that the funds must comply with principles that prohibit backing entities involved in international violations. However, Charlotta Dawidowski Sydstrand, AP7's sustainability officer, acknowledges the challenges of obtaining verifiable information from conflict zones, stating, "We need more evidence to act. It is problematic to get verifiable information from war zones; there are many rumors and allegations." This admission underscores the complexities pension funds face when navigating investments in politically sensitive regions.
The situation contrasts sharply with the actions of other investment firms, such as the Norwegian pension fund Storebrand/SPP, which divested its holdings in Palantir last fall, raising the stakes for Swedish pension fund management as they reassess their portfolio strategies amidst increasing public and ethical scrutiny.