Sustainability and Corporate Governance Report 202
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HANDELSBANKEN FONDER – IN-DEPTH REPORT Investor n
etworks We actively participate in investor networks to promote the development of the asset management sector in its sustainability efforts. Participating in networks also plays an important role in our learning and development in this area. Examples of Swedish networks we participate in are SISD and Hållbart Värdeskapande. International networks we participate in include IIGCC and PRI. Dialogue with fund managers Our multi manager solutions unit conducts ongoing dialogues with fund companies with the aim of influencing them to conduct their investment activities in a more sustainable direction. Engagement takes place through direct dialogue with fund companies and fund managers. Corporate governance One of the most direct ways to engage as an owner is through voting at AGMs and representation in nomination committees. The starting point of our work is our Policy for Shareholder Engagement and Responsible Investment and our guidelines on nomination committee activities. We also use relevant industry standards from the Swedish Investment Fund Association, Swedish Code of Conduct for Fund Management Companies, and Corporate Governance Policy for Handelsbanken Fonder. We exercise active governance for both actively managed and passively managed funds. Examples of key issues in our governance activities: • Transparency and good communication • Qualifications and composition of the board • Fees and remuneration for board members • Remuneration schemes and incentive schemes in the companies • Sustainability efforts and vision. Read more about how Handelsbanken Fonder has approached engagement in 2020 further on in this report. Annual general meetings Our funds invest globally in a huge number of companies across a wide range of markets. The annual general meeting (AGM) is one of the main tools at our disposal that allow us to exert influence in the majority of the companies our funds own. • We generally support shareholder resolutions that seek to promote sustainable operations and to strive for greater transparency in accounting for and reporting a company’s work on climate impact, human rights efforts and labour law. • We normally vote at AGMs in the companies where ownership exceeds 0.5 per cent or if issues of particular concern are raised. • We vote by proxy, which allows us to reach more companies and markets and thus influence the companies’ development to a greater extent. The nomination process The greatest direct impact we can have in our ownership role is through serving on nomination committees. In the companies where our funds represent a major ownership, we are often requested to participate in the nomination committee. We accept such a request when the nomination committee’s work gives us the opportunity to influence the composition of the boards. We send our guidelines for nomination committee activities to all companies that offer us a seat on the committee. The guidelines describe our focus, namely: • Qualifications of the board and needs analysis • Importance of sustainability expertise • Board diversity and gender balance. 58 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.