Sustainability and Corporate Governance Report 202
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HANDELSBANKEN FONDER – HOW WE TAKE ACTION TO REDU
CE CLIMATE IMPACT Companies in transition – what are they, and why do we invest in them? We want to do our part in accelerating the transition to a more climate-neutral society. By investing in energy companies that are shifting to clean energy production, we can move capital from fossil fuels to renewables, where we are convinced that the winning companies of the future exist. To make sure we are investing in the right company, they must meet the specific requirements set by our sustainability committee. The committee decides on each individual company. By the end of 2020, 14 companies had been approved. Our requirements for companies in transition • The company’s anticipated business development follows a clear, defined plan whose goal is to reduce the company’s carbon dioxide emissions in line with the Paris Agreement. • Its current operations do not primarily consist of energy from fossil fuels. • The company’s current rate of investment supports the transition to reducing carbon dioxide emissions in line with the Paris Agreement. Most of our funds, with the exception of a few index funds and ETFs, can invest in companies in transition. However, it is important to remember that much is happening on the sustainability front, and the view of the transition and measurability is changing. Therefore, we also continuously evaluate our criteria for deciding how they need to develop over time. The decision process Identifying companies Fund managers identify companies that may qualify as a company in transition. Analysing the company according to established criteria • Development in line with the Paris Agreement • Business not mainly fossil fuel based energy • Investment pace supports transition to renewables Sustainability team assists in the analysis Decisions in the Sustainability Committee2 The Sustainability Committee decides whether the company qualifies as a company in transition. Communicating decisions to stakeholders Decisions are communicated to internal and external stakeholders. The list of companies is published on handelsbankenfonder.se Ongoing analysis and verification that the company meets set criteria. Ongoing update in the Sustainability Committee on this follow-up. 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. 26