Coal news and updates

AP7 cuts Chinese manufacturers for expanding coal production

AP7, Stockholm, excluded seven companies from its portfolio, including five Chinese manufacturers for increased coal production, following its latest six-monthly review.

Ninety-three companies are now excluded from the 722.5 billion Swedish kronor ($78.7 billion) fund's investment universe, it said in a notice posted on its website on Wednesday.

AP7's latest review, which takes place every June and December, saw the fund sell its investments in five Chinese power companies due to expansions of their coal operations: China Power International Development, China Shenhua Energy Co., Huadian Power International Corp., Shanxi Lu'An Environmental Energy Development Co. and TBEA Co.

The fund said that the companies have acted against the objectives of the Paris Agreement, which aims to limit global temperature increases to two degrees Celsius. AP7 expanded its exclusion policy in 2020 to include companies that continue to increase coal production.

Finnish power generation company Wartsila Oyj Abp and Thai investment company Ratch Group Public Co. were excluded for their involvement in the production of components for nuclear weapons and inadequate human rights management, respectively, the fund said.

The size of the divestment and how assets were reinvested could not be learned. A spokesman could not be reached to provide further details.