Climate and Nature report 2023 1
Climate and Nature report 2023 CONTENTS
Climate and Nature report 2023 Foreword by the CEO
Climate and Nature report 2023 We are committed to
Net Zero
Climate and Nature report 2023 Governance
Climate and Nature report 2023 Strategy
Climate and Nature report 2023 Risk management
HANDELSBANKEN FONDER – RISK MANAGEMENT 10 CONTENT
S Foreword by the CEO We are committed to Net Zero Governance Strategy Risk management Metrics and targets Nature Glossary The rationale was that by knowing whether your investments are following the required emission reduction trajectory for their specific sector, you know if there is an elevated transition risk. This is because we know that regulators will try to enforce compliance with those trajectories and that technologies and consumer demand are trending in those directions as well. 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. Note that a fund with risk level 5-7 as stated in the fund’s key information investment document (KIID) can vary greatly in value due to the fund’s composition and management methodology. A summary of investors’ rights as well as a prospectus, fund rules and KIID are available for each fund at handelsbanken.se/fonder. Today, more elaborate models are emerging which are explicitly trying to answer the second question for both transition and physical climate-related risks. These models use inputs such as how the physical climate will change in different temperature scenarios, companies’ abatement costs for reducing carbon emissions, and likely policy responses from governments. These are commonly referred to as climate-related stress tests. In our scenario analysis, we consider the specific types of transitional risks, such as policy and legal risks, technology risks, and market risks, as well as physical risks, including both acute and chronic risks, that are relevant to our investments. To maintain the relevance and actionability of our risk assessments, we conduct scenario analysis and update our risk assessments on a regular basis. Even though we believe in specific quantitative data, we also acknowledge the limitations that are still associated with trying to calculate the financial impact of climate change. Therefore, an important aspect of assessing climaterelated risks is still the qualitative analysis that is done by portfolio managers on a daily basis as they monitor the portfolios and investigate new potential investments. Identifying and integrating climaterelated opportunities In addition to identifying climate-related risks, our scenario analysis also helps us identify potential climate-related opportunities. These opportunities are further integrated into the thematic analysis conducted by our portfolio managers. We actively seek investments in companies that are aligned with the EU Taxonomy and contribute to the United Nations Sustainable Development Goal 13 (SDG 13), which focuses on taking urgent action to combat climate change and its impacts. By investing in climate solution companies, such as those involved in renewable energy, energy efficiency, sustainable transportation, and green buildings, we aim to capitalise on the opportunities presented by the transition to a low-carbon economy. Our portfolio managers incorporate these themes into their investment strategies, ensuring that our portfolios are well-positioned to benefit from the growth potential of these sectors. We believe that by aligning our investments with the EU Taxonomy and SDG 13, we can not only generate attractive returns for our clients but also contribute to the global effort to mitigate climate change. This approach allows us to create value for our stakeholders while supporting the transition to a more sustainable future.
Climate and Nature report 2023 Metrics and targets
Climate and Nature report 2023 Nature
Climate and Nature report 2023 Glossary