In Nordea a team of dedicated experts is responsible for questions related to responsible investment.
Key economic indicators are important in the portfolio management of funds. In the portfolio management of Nordea's actively managed funds questions related to the environment, society and good governance are integrated to the everyday management work. We call the result of this work responsible return.
In Nordea a team of dedicated experts is responsible for questions related to responsible investment. Among other things, the team investigates and evaluates the companies' way to manage industrial safety or to prevent sub-contractors from using child labour or releasing hazardous substances to the environment.
Stars Fund – advanced social responsibility
In some Nordea funds a responsibility analysis is an integral part of the investment process. For example, the companies selected to Nordea 1 – Emerging Stars Equity Fund are the best in their peer group based on a fundamental financial analysis and social responsibility.
All Nordea funds' portfolio managers can use the ESG analysis (analysis of environmental responsibility, social responsibility and governance) in order to be able to choose the right investment alternatives for the funds.
This means that they can use both key economic indicators and information on how the companies manage issues related to the environment, human rights and business ethics in choosing the investment alternatives.
We engage in dialogues with companies that violate international norms or that, in our opinion, must improve their methods of dealing with environmental, social and governance issues.
If the company does not exhibit a willingness to alter its conduct in the areas where it is in violation of norms, Nordea's Committee for Responsible Investments may decide to divest the company's shares from all of Nordea's fund portfolios.
The decision to exclude a company from our fund portfolios is always the last resort. However, if the company is in breach of international norms (such as the UN Global Compact) or does not show the will to alter its operating practices with regard to issues concerning environmental protection, human rights, labour rights and business ethics, we will finally divest the company's shares. Exclusion concerns all our actively managed funds.
If a company is in any way involved in the manufacture of cluster weapons, nuclear weapons or the development of nuclear programmes, it will be excluded from all of Nordea's actively managed fund portfolios.The companies we decide not to invest in are mentioned on the list of excluded companies.