Sustainability and Corporate Governance Report 202
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IN-DEPTH REPORT – HANDELSBANKEN FONDER Exclusion
EXCLUSION Sectors We have a long-term investment horizon and therefore exclude investments in companies with unsustainable longterm business models or companies that risk undermining the 2030 Agenda and the SDGs. Exclusion of controversial sectors We exclude companies if more than 5 per cent of their turnover is derived from controversial sectors, such as alcohol, tobacco, cannabis, commercial gambling, weapons and munitions, pornography and fossil fuels. We also exclude companies that violate international norms and conventions related to human rights, the environment, labour law or the fight against corruption and bribery. The principle of excluding fossil fuels can be suspended temporarily if the company meets our requirements for qualifying as a company in transition. This applies to most of our funds. Thresholds for exclusion For our actively managed funds, the requirements in the table above on the right apply when we exclude companies and sectors. Our actively multi manager solutions place corresponding demands on the funds they invest in, for both our own funds and those from other fund providers. For our passively managed funds, the exclusion requirements are incorporated into the funds’ indices or strategies. Prohibited weapons1 Nuclear weapons Weapons and munitions Alcohol Tobacco Cannabis Pornography Commercial gambling Fossil fuel extraction Fossil-fuel based power generation Tar sands Max. turnover, production 0% 0% 5% 5% 0% 5% 0% 5% 5% 5%2 0% Max. turnover, distribution 0% 0% 5% 5% 5% 5% 5% 5% 5% 5%2 - 1 Cluster bombs, anti-personnel mines, chemical and biological weapons. 2 For most of our funds, the principle of excluding fossil fuels can be suspended for a period of time if the company meets our requirements for qualifying as a company in transition. For more information, see each fund’s prospectus. For services related to these industries, the maximum limit is 50 per cent. Services include marketing, key components, raw materials, mechanical and technical equipment, technology, IT and support services. Exceptions from the above apply to a few of our funds.13 Work is underway to see how these funds can also be adapted to meet the same requirements as our other funds. For more information, see each fund’s prospectus. Follow-up and control Handelsbanken Fonder’s risk control function checks on a daily basis that the funds comply with their rules on the exclusion of companies. The follow-up also checks that we do not invest in companies that violate international norms and conventions. Sector Examples of negative effects Tobacco Increased risks in the production and consumption stages, adverse health effects, negative effects on society in terms of increased resource consumption of health care and medical care. Pornography Alcohol Cannabis Commercial gambling Weapons and munitions Fossil fuels Risks associated with working conditions, increased sustainability risks in general. Negative health risks at the individual level, increased resource consumption for society as a result of addiction and negative health effects. Negative societal impact, conflict and war have a major impact on the world’s poor. Negative climate and environmental impacts, climate change has an outsize impact on the world’s poor. Risk of counteracting 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. 55