Climate and Nature report 2023 1
Climate and Nature report 2023 CONTENTS
Climate and Nature report 2023 Foreword by the CEO
HANDELSBANKEN FONDER – FOREWORD BY THE CEO 3 The necessary transition CONTENTS Foreword by the CEO We are committed to Net Zero Governance Strategy Risk management Metrics and targets Nature Glossary 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. THE IPCC SYNTHESIS REPORT, RELEASED IN MARCH 2023, provided a strong warning: our planet’s climate is changing at an accelerating pace. Sea levels are rising, extreme weather events are becoming more frequent, and ecosystems are under immense stress. However, the report also emphasises that there are technologies and solutions available to limit global warming. It’s not too late to take action and mitigate some of the worst effects of climate change. Every fraction of a degree of warming we can avoid matters significantly. Against this background, it is of utmost importance that we as an asset manager, and the companies we invest in, understand and can handle the rapid changes by adapting to and limiting our climate impact. The record-breaking heat of 2023 underscores the urgency for continued measures to combat climate change. This urgency was further highlighted during COP28, the climate summit in Dubai, where countries collectively agreed that “the world should transition away from fossil fuels.” During 2023, Handelsbanken’s transition plan – Towards net zero 2040 – was published. It is based on the Bank’s unique corporate culture and the goal of becoming a net-zero company by 2040. This goal encompasses the entire Group and includes lending, leasing, investments, and emissions from the Bank’s own operations. We at Handelsbanken Fonder are determined to do our part and become a net zero asset manager by 2040. At Handelsbanken Fonder, we are committed to reducing our funds’ climate footprint and at the end of 2023 99.8 percent of the fund volume excluded fossil fuels. When this is not enough to transform the economy and additional efforts are required, we also work to allocate investments towards companies that contribute to solutions to mitigate the consequences of climate change, but also towards companies that change from fossil-dependent operations to renewables. Through product development, we can continue to increase our sustainable investments and investments in environmental and climate solutions, and thus contribute to a reduced climate footprint. Nature and biodiversity are declining with a speed never experienced before. This is an existential threat to humanity, society and the economy. We must understand these risks and the financial flow must be in line with nature’s need. We have therefore, among other things, taken the first steps towards reporting in line with the Taskforce on Nature-related Financial Disclosure (TNFD) recommendations and guidance for organisations to report and act on evolving nature-related impacts and dependencies. As global emissions continue to rise, and the physical impacts of climate change become increasingly severe, the urgency to transform our economy has never been greater. The financial sector plays a crucial role in enabling the capital necessary to transform our economy and allocate capital where it matters the most. The financial sector plays a crucial role. We also hope that this report can contribute to increased knowledge on climate change, its impacts on the financial sector, and the role the financial sector plays in addressing this global challenge. We believe it is crucial to understand both how climate change affects our industry and how our actions can influence the transition to a more sustainable future. To facilitate this understanding, we have included a glossary at the end of the report, explaining the most commonly used terms on this topic and the differences between them. Our aim is to provide a valuable resource for our employees, customers, the general public, and our industry colleagues, fostering a better understanding of climate change, the financial sector’s role in mitigating its effects, and the terminology used in this context. Magdalena Wahlqvist Alveskog, CEO Handelsbanken Fonder
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
Climate and Nature report 2023 Glossary