Sustainability considerations are a natural part of your investments

Responsible investments are about sensible long-term investments. This means that we analyse the sustainability aspects of companies and countries just as we analyse financial aspects. Not only does this provide us with greater insight into the companies and countries in which we invest, but it also gives us better opportunities to assess whether or not an investment is attractive.

Creates value for customer returns

Environmental and social conditions and good governance practices (ESG) are also referred to as sustainability issues. How companies and countries work with sustainability issues can significantly influence whether or not they are good investments. Because of this, our portfolio managers incorporate sustainability factors into their analyses, which gives them greater knowledge of an investment’s future potential for generating good financial returns. 

ESG-funds

Funds that promote environmental or social factors and ensure good governance practices are called ESG funds. The funds promote ESG by investing, for example, in companies that focus on climate and employee conditions, diversity or anti-corruption. They can also work actively to influence companies to become more sustainable or to refrain from investing in companies that have a large and detrimental climate impact.
 
ESG funds comply with Article 8 of the EU regulation on sustainability‐related disclosures in the financial services sector.
 
Read more about ESG funds






Customised sustainability approach

Our funds have different investment strategies and invest in different companies and countries. For example, there is a big difference in how sustainability plays a role for emerging-market equities in relation to investment in Nordic corporate bonds, and in how companies work with sustainability within and across industries. For this reason, the funds also work with sustainability in different ways in order to create the highest possible value for customers.

Working systematically with sustainability risks

We focus on analysing and reducing  sustainability risks in order to protect your investments. If the companies do not manage and address sustainability issues, there may be negative consequences for earnings and for your potential return. Because of this, we analyse whether the companies, for example:

  • take climate issues into consideration
  • live up to human rights obligations
  • have good employee conditions
  • do not damage biodiversity
  • do not contribute to water pollution
  • work to combat corruption

This helps us select sustainable and robust investments that can potentially generate attractive returns for you.  
 

Example: Climate-related risks and opportunities

The climate agenda can potentially have a bearing on whether or not an individual company is able to deliver good returns. Consequently, the green transition plays an important role when we select investments. Our thorough analysis of climate factors helps us to select the companies that are best equipped to deal with climate issues and to embrace the green growth opportunities. 
 
In the ‘Climate: Our Investment Approach’ report, you can read examples of our climate approach in the paper industry, the energy and financial sector, copper and the automotive industry. 
 
Read the report here






Analysis tools

Our portfolio managers use a number of tools to identify and analyse business-critical sustainability issues in their efforts to select good investments.

Innovative analytical tool

In collaboration with Danske Bank, we have developed a special ESG analysis tool to assess the sustainability issues that may affect a company’s value development and return opportunities. The tool helps portfolio managers to incorporate sustainability into investment decisions so that they can select the best possible investments.

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Powerful ESG data platform

We have a data platform that includes more than 8,000 different data points on sustainability issues for companies and countries. The platform provides our portfolio managers with a deeper insight into and more perspectives on their sustainability work, all of which they use in their overall investment analysis and investment selection. 

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Screening

We screen investments to identify the potential risks companies face in terms of sustainability and to identify investment opportunities. Screening is also used to identify companies that potentially violate international norms and standards, such as in respect to human rights. 

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Team of ESG specialists

Our team of ESG specialists and analysts support our portfolio managers. Among other activities, the specialised ESG team helps portfolio managers to analyse companies and countries from both a financial and a sustainability perspective. 

ESG training

Our portfolio managers are trained on an ongoing basis to strengthen their competencies within the ESG area. This is to ensure that we can constantly improve and develop the work of including sustainability in the selection of your investments. For example, many of our portfolio managers have completed the EFFFAS training programme and are certified as ESG Analysts. 

 

Read more about our how sustainability is incorporated into our funds


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