Sustainability and Corporate Governance Report 202
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HANDELSBANKEN FONDER – HOW WE WORK Handelsbanken
SDG Solutions Model We see great investment opportunities in the companies that deliver solutions to achieving the SDGs. By using the SDG Solutions Model, we examine the products and services a company offers. Thanks to this model, we can quickly, efficiently and accurately analyse the extent to which the business models of the companies we’ve invested in, or are considering to invest in, help to achieve the SDGs. Machine learning linked to AI is the foundation of the SDG Solutions Model, which was developed by Handelsbanken Fonder in collaboration with researchers at the Stockholm School of Economics. The model analyses the companies’ products and services as well as the markets in which the companies operate based on the 169 SDG targets. The results indicate how much of the companies’ revenue comes from solutions for each target. These are then added together and assigned a result for the entire fund. Handelsbanken SDG Solutions – helping us to find solutions Data AI model Internally developed SDG classification Result Textual analysis of annual and sustainability reports. The material is structured digitally. Revenue distribution for products and services. Grouping in product clusters. Products and services are classified according to the 2030 Agenda targets. The results indicate how much of a company’s revenue comes from products and services that contribute to achieving the 2030 Agenda. With the help of a portfolio weighting for each company, this is aggregated into a final result for the fund. Information about risk Past performance does not predict future returns. The value of the money invested in the fund can increase or decrease and there is no guarantee that all of your invested capital can be redeemed. The fund’s prospectus (“Informations broschyr”), fund rules and KIID are available at handelsbanken.se/funds. 12