Sustainability and Corporate Governance Report 202
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HANDELSBANKEN FONDER – IN-DEPTH REPORT Inclusion
INCLUSION We have a long-term investment horizon and actively seek to include investments in companies with sustainable, longterm business models that can directly contribute to the 2030 Agenda and the SDGs. We actively seek to invest in: • Companies that conduct their business in a sustainable way or whose products and services contribute to sustainable development. • Companies that contribute to the transition to a low-carbon economy in line with the goals of the Paris Agreement. We wish to be part of the transition to a low-carbon world, and today we see several investment opportunities in companies that are shifting their business from energy production based on fossil fuels to renewable sources. We have therefore decided that we can accept a certain exposure to fossil fuels if the company meets our requirements for qualifying as a company in transition. This applies to most of our funds. The requirements apply to companies in electrical power generation, transmission and distribution. Read more about companies in transition on page 26. Active equity and fixed income management – including companies We actively seek companies that conduct their business in a sustainable way or whose products and services contribute to sustainable development. Company analyses are essential for our active management. Each company is carefully analysed based on relevant issues concerning strategy, financial and non-financial results and risks, capital structure, social and environmental impact, and corporate governance. The analysis is based on information from the companies, external sources and our own analysis. Multi manager solutions – including funds Multi manager solutions offers actively managed fundof-funds. This means that investments do not take place directly in individual companies, but rather in other funds. The investments are selected based on a comprehensive analysis of both our own funds and funds from other fund providers, of which sustainability is an integral part. Fund investments are selected and followed up in a selection process that includes sustainability criteria at both the fund and fund company levels. The fund company evaluation considers organisational structure, administrative team and investment process, among other factors. We also place requirements on systematic sustainability efforts. The fund company’s future sustainability ambitions are also assessed. There is no distinction between our own funds or funds managed by other fund companies. Passive management – including an index or strategy Index management and other passive management is a rules-based form of management in which the sustainability considerations taken by each fund are built into the index methodology or strategy of the funds. Therefore, it is essential for us to actively choose indices and strategies that reflect our sustainability requirements. Indices are developed in collaboration between an index provider and a sustainability analysis provider. We offer funds that: • Include companies based on their sustainability efforts. This is done by evaluating the companies’ sustainability performance. Companies that successfully manage sustainability-related risks and opportunities are prioritised. • Select and weigh companies so that the portfolio’s greenhouse gas emissions are aligned with the Paris Agreement’s climate goals. 56 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.