Sustainability and Corporate Governance Report 202
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HOW WE WANT TO HELP RAISE LIVING STANDARDS – HAND
ELSBANKEN FONDER Examples of our human rights efforts in our investment business: • We engage in direct dialogue with several companies, as a result of receiving signals of human rights violations and proactively with companies that have elevated risks related to human rights. These dialogues focus on the rights of indigenous peoples and forced labour, to name a few examples. • We have joined the Investor Alliance for Human Rights; which you can read more about on the right. • We conduct direct dialogues with companies within the green value chain, such as those who provide solutions in renewable energy, electrification and energy efficiency. Through their products and services, these companies offer solutions to climate change yet they have high operational risks related to human rights. • In our active fixed-income management, we use an analysis model called the ESG Country Risk Monitor which develops data on respect for human rights and identifies risk areas that are overlooked. The model is based on several variables within ESG issues in order to evaluate a country’s progress on sustainability. Among other tools, we use world governance indicators from the World Bank8 Investor Alliance for Human Rights In 2020, we joined the Investor Alliance for Human Rights, a collaborative initiative for developing our work on human rights. Human rights involve multiple challenging issues that are often difficult for us to resolve on our own. Engaging in this alliance with other investors is important for achieving more results and driving change. The Investor Alliance for Human Rights is a member-based, non-profit initiative that focuses on investor responsibility for respecting human rights, engagement with companies to drive accountability in terms of human rights, and standard-setting activities that promote robust human rights policies. , the UN’s Human Development Index and the UN’s Sustainable Development Goals index. This analysis is then used in our investment analysis, and has led us to forgo investment in certain countries. In 2021, we will further develop our engagement activities in the pursuit of respect for human rights. We have also begun efforts to refine the approach to our investment activities in the most challenging countries. The alliance currently consists of over 170 institutional investors, including asset management firms, trade union funds, public pension funds, foundations, endowments, faith-based organisations and family funds. The members currently represent a total of over USD 5 trillion in assets under management in over 18 countries. Together with civil society organisations, the initiative to equip the investor collective with knowledge and opportunities is working to put investor responsibility for respecting human rights into practice. This is done primarily by providing investors with practical tools, supporting direct engagement dialogues, and coordinating engagement among politicians and standardisation bodies. In 2021, we will be involved in work streams within the alliance that are closely linked to our investment portfolios. The aim is to increase our influence in promoting human rights. Countries on sanctions lists As a result of international agreements and sanctions, we do not invest in the few countries on sanctions lists. We also do not invest in government bonds in countries which, according to the Financial Action Task Force’s proclamation, do not comply with international obligations to prevent the financing of money laundering and terrorism.9 Finally, we do not invest in government bonds that are banned from investment under the EU’s financial sanctions.10 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. 45