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
Climate and Nature report 2023 Metrics and targets
HANDELSBANKEN FONDER – METRICS AND TARGETS 22 CON
TENTS Foreword by the CEO We are committed to Net Zero Governance Strategy Risk management Metrics and targets Nature Glossary Physical value at risk The current PVaR for our total portfolio stands at 0.10 %, which is lower than the global benchmark of 0.14 %. This aligns with our earlier observation of the portfolio’s higher resilience to climate hazards compared to the benchmark. We examined two future scenarios: 1. Likely Scenario: This scenario projects a PVaR increase to 0.61 % for our portfolio, compared to 0.72 % for the global bench mark. 2. Worst-Case Scenario: Under this scenario, our portfolio’s PVaR could rise to 0.95 %, still outperforming the global benchmark’s 1.10 %. The analysis reveals varying levels of risk across the portfolio exposure to different sectors: 1. Manufacturing: This sector shows the highest potential risk exposure, with a current PVaR of 0.05 % potentially increasing to 0.53 % in the worst-case scenario. 2. Financial and Insurance Activities: Currently at 0.01 %, this sector could see its PVaR rise to 0.11 % in the worstcase scenario, indicating significant potential exposure. 3. Information and Communication: Starting at 0.01 %, this sector’s PVaR could increase to 0.07 % in the worst-case scenario. 4. Wholesale and Retail Trade: With a current PVaR of 0.01 %, this sector could face an increase to 0.08 % in the worst-case scenario. 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. 5. Other sectors: Most other sectors show relatively lower PVaR values and potential increases, suggesting lower exposure to physical climate risks. These results complement our earlier climate hazard risk scores, providing a more comprehensive view of our portfolio’s resilience. The sector-specific insights allow us to identify areas of higher climate risk exposure and inform our risk management strategies. Overall, our portfolio demonstrates better resilience compared to the global benchmark across different scenarios, aligning with our commitment to managing climate-related risks effectively.
Climate and Nature report 2023 Nature
Climate and Nature report 2023 Glossary