Sweden's AP7 pension fund opposes US proposal to scrap Biden-era climate rule

COPENHAGEN, Aug. 4 (Reuters) - 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 that require companies to disclose their climate-related risks and spending.

The SEC proposed to do away with the dormant regulations that were adopted under former President Joe Biden as part of a government-wide retrenchment of climate policy since President Donald Trump returned to office last year.

• "Removing the rules would risk impairing investors' ability to assess climate-related financial risks and make well-informed investment decisions," Sweden's largest pension fund said in a statement.
• The U.S. regulation was adopted in 2024 but has yet to take effect due to intense legal opposition from industrial lobbies and conservative-leaning states.
• More than 60% of AP7 equity holdings are invested in North American companies, according to the fund.
• The fund uses climate-related information in its investment analysis, stewardship activities, proxy voting, and in assessing physical, regulatory and systemic risks.
• The SEC proposal is currently subject to public notice and comment prior to any final decision from the regulator.