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.
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.
This type of fund promotes environmental (E) or social (S) conditions and ensures good governance practices (G). Depending on the fund’s investment strategy, this may be done through screening, exclusion, inclusion and active ownership. The funds may partially invest in sustainable investments, but making sustainable investments is not their goal.
Funds that promote environmental or social characteristics are subject to the disclosure requirements set out in Article 8 of the EU’s ‘Regulation on sustainability‐related disclosures in the financial services sector.
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.
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:
Our portfolio managers use a number of tools to identify and analyse business-critical sustainability issues in their efforts to select good investments.
