Sustainability and Corporate Governance Report 202
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HANDELSBANKEN FONDER – HOW WE TAKE ACTION TO REDU
CE CLIMATE IMPACT Our index funds are aligned to the Paris Agreement In 2020, we started work on adjusting our index funds with benchmarks that are aligned with the Paris Agreement’s climate goals. A first change took place in the spring of 2021, when five of our index funds switched to Paris-Aligned Benchmarks (PAB). This marks a key development towards achieving the net-zero emissions goal in our portfolios by 2040 and aligning all our assets under management with the Paris Agreement goals. More index funds are Paris-aligned For several years, we have been working to develop and shift our passive fund offering to sustainable indices. With our recently adopted sustainability goals, combined with an independent standard for climate benchmarks published in 2020 by the EU, we are now taking new steps in the development of our index funds. In May 2021 five of our global index funds, with a combined managed capital of SEK 127 billion switched to ParisAligned Benchmarks. By doing this our funds can become a tool for investors and savers who want to reduce the carbon footprint of their funds and align their savings with the Paris Agreement. This supports Handelsbanken Fonder’s goal of reducing the carbon intensity of the portfolios 50 per cent by 2030 and marks a crucial step in our journey towards net-zero emissions. “Alignment is an important part of fulfilling our sustainability goals,” says Emma Viotti, Head of Passive Management. “The new indices make it possible to better manage sustainability-related risks as well as opportunities. Through exclusion and reduced weight in companies with high emissions and companies that lack a transition strategy, we reduce climate-related risks in the portfolio.” The new indices reward companies that have set science-based targets3 and companies that, through their products and services, contribute positively to meeting the 2030 Agenda's environmental goals. The goal is to target investments to companies that can help reduce actual emissions and meet these goals. The indices are also designed to maintain the same exposure to sectors with a high climate impact as their investable universe. This means that carbon dioxide reduction cannot be achieved simply by shifting investments to sectors with a low climate impact. “Shifting capital to more sustainable investments is a cornerstone of the EU Action Plan for sustainable growth. For us, it was a given to move our existing funds in a more sustainable direction rather than create new product offerings. Our index funds have been applying exclusion criteria and negative screening for several years now. The fact that we are now switching to PAB and adapting our portfolios in line with the Paris Agreement goals represents a natural next step and a clear commitment to climate neutrality,” Viotti concludes. Exclusion Investment universe of securities • Controversial sectors • Companies that violate international norms and conventions • Companies that undermine environmental goals Inclusion • Companies that set sciencebased emissions targets (SBTs) • Companies contributing to the environmental goals of the 2030 Agenda • Companies in transition 28 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.