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
Climate and Nature report 2023 Nature
HANDELSBANKEN FONDER – NATURE 26 Impacts, depende
ncies, risks and opportunities CONTENTS Foreword by the CEO We are committed to Net Zero Governance Strategy Risk management Metrics and targets Nature Glossary At an early stage of assessing nature and biodiversity, the dependencies and impacts, as well as the risks and opportunities, are interconnected. For example, a biodiversity hot spot identified on a forestry property could be both a potential risk and a potential opportunity depending on the operations carried out by the owner. 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. Handelsbanken Fonder has made an initial mapping of how the fund company’s investment portfolio at an overall level can, through its combined exposure to different sectors, be assumed to affect and be dependent on nature and its ecosystem services. The survey provides initial guidance as to which sectors and areas may be relevant to evaluate more closely. The analysis is based on research-based assumptions about how sectors in general can be linked to the impact on different ecosystem services, as well as which ecosystem services the different sectors’ production processes are primarily dependent on. The assessment is designed at global and sector level and thus does not take into account company-specific or geographically specific factors. The mapping was carried out using the tool Encore, developed by Global Canopy, UNEP FI and UNEP-WCMC. For risks related to impact drivers, Encore creates a risk score of 3 – 9, where 3 corresponds to a very low risk and 9 corresponds to a very high risk. The score is derived as a sum of the values for three underlying categories: i) Frequency, ii) Timeframe, and iii) Severity, each assigned a value of 1-3. The weighted risk exposure per impact driver shows that GHG emissions, terrestrial ecosystem use, along with water use and freshwater ecosystem use, are the largest potential impact drivers of the total portfolio. To better understand the sources of the risk exposure, the results are shown for each sector – which highlights that the exposure to manufacturing companies is the largest contributor to the total risk exposure related to GHG emissions. For risks related to dependencies on ecosystem services, Encore uses a similar scoring method as for impact drivers – where a higher value indicates a higher risk. The portfolio weighted score should however only be interpreted as a relative ranking of the risk exposures, rather than an absolute measure. The weighted risk exposure of dependencies per ecosystem service show three large potential dependencies on water: i) ground water, ii) Weighted risk exposure score per impact driver 10 0 1 2 3 4 5 6 7 8 9 OTHER SERVICE ACTIVITIES WHOLESALE AND RETAIL TRADE; REPAIR OF MOTOR VEHICLES AND MOTORCYCLES WATER SUPPLY; SEWERAGE, WASTE MANAGEMENT AND REMEDIATION ACTIVITIES TRANSPORTATION AND STORAGE REAL ESTATE ACTIVITIES PUBLIC ADMINISTRATION AND DEFENCE; COMPULSORY SOCIAL SECURITY PROFESSIONAL, SCIENTIFIC AND TECHNICAL ACTIVITIES MINING AND QUARRYING MANUFACTURING INFORMATION AND COMMUNICATION HUMAN HEALTH AND SOCIAL WORK ACTIVITIES FINANCIAL AND INSURANCE ACTIVITIES ELECTRICITY, GAS, STEAM AND AIR CONDITIONING SUPPLY EDUCATION CONSTRUCTION ARTS, ENTERTAINMENT AND RECREATION AGRICULTURE, FORESTRY AND FISHING ADMINISTRATIVE AND SUPPORT SERVICE ACTIVITIES ACTIVITIES OF HOUSEHOLDS AS EMPLOYERS ACCOMMODATION AND FOOD SERVICE ACTIVITIES
Climate and Nature report 2023 Glossary