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
Climate and Nature report 2023 Glossary HANDELSBAN
KEN FONDER – GLOSSARY 33 Glossary CONTENTS Foreword by the CEO We are committed to Net Zero Governance Strategy Risk management Metrics and targets Nature Glossary Greenhouse gas emissions Greenhouse gas emissions typically include the following gases, which are covered under the Kyoto Protocol: 1. Carbon dioxide (CO2): The most significant anthropogenic greenhouse gas, primarily resulting from the combustion of fossil fuels, deforestation, and industrial processes. 2. Methane (CH4): Emitted during the production and transport of fossil fuels, as well as from livestock, agricultural practices, and waste management. 3. Nitrous oxide (N2O): Released from agricultural and industrial activities, as well as during the combustion of fossil fuels and solid waste. 4. Hydrofluorocarbons (HFCs): Synthetic gases used as replacements for ozone depleting substances in various applications, such as refrigeration and air conditioning. 5. Perfluorocarbons (PFCs): By-products of aluminum smelting and semiconductor manufacturing processes. 6. Sulfur hexafluoride (SF6): Used in various industrial applications, such as electrical insulation and semiconductor manufacturing. 7. Nitrogen trifluoride (NF3): Used in the production of semi conductors and liquid crystal displays (LCDs). 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. Scope 1 emissions Scope 1 emissions are direct greenhouse gas emissions that occur from sources owned or controlled by an organisation. These emissions are a direct result of a company’s activities and include: • Emissions from combustion in owned or controlled boilers, furnaces, and vehicles. • Emissions from chemical production in owned or controlled process equipment. • Fugitive emissions, such as leaks from owned or controlled equipment. Scope 2 emissions Scope 2 emissions are indirect greenhouse gas emissions associated with the purchase of electricity, steam, heat, or cooling consumed by an organisation. These emissions physically occur at the facility where the energy is generated but are attributed to the organisation that uses the energy. Scope 2 emissions are calculated using either a location-based or market-based method: 1. Location-based method: Reflects the average emissions intensity of grids on which energy consumption occurs. 2. Market-based method: Reflects emissions from electricity that companies have purposefully chosen (e.g., through contractual instruments like renewable energy certificates). Scope 3 emissions Scope 3 emissions are all other indirect emissions that occur in an organisation’s value cain. These emissions are a consequence of the company’s activities but occur from sources not owned or controlled by the organisation. Scope 3 emissions include both upstream and downstream emissions, such as: Upstream categories 1. Purchased goods and services: Emissions from the extraction, production, and transportation of goods and services purchased by the organisation. 2. Capital goods: Emissions from the production of capital goods purchased or acquired by the organisation. 3. Fuel- and energy-related activities: Emissions related to the production of fuels and energy purchased and consumed by the organisation (not included in Scope 1 or 2). 4. Upstream transportation and distribution: Emissions from the transportation and distribution of products purchased by the organisation. 5. Waste generated in operations: Emissions from the disposal and treatment of waste generated by the organisation. 6. Business travel: Emissions from employee travel for business-related activities. 7. Employee commuting: Emissions from employee transportation to and from work. 8. Upstream leased assets: Emissions from the operation of assets leased by the organisation (lessee). Downstream categories 9. Downstream transportation and distribution: Emissions from the transportation and distribution of products sold by the organisation. 10. Processing of sold products: Emissions from the processing of intermediate products sold by the organisation. 11. Use of sold products: Emissions from the use of goods and services sold by the organisation. 12. End-of-life treatment of sold products: Emissions from the waste disposal and treatment of products sold by the organisation at the end of their life. 13. Downstream leased assets: Emissions from the operation of assets owned by the organisation (lessor) and leased to other entities. 14. Franchises: Emissions from the operation of franchises not included in Scope 1 and 2. 15. Investments: Emissions associated with the organisation’s investments.