Responsible investments

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.

How is sustainability included in portfolio management?

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.

Part of the decision

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.

Stars Funds – advanced social responsibility

In some Nordea funds a responsibility analysis is an integral part of the investment process. The Stars Funds only accept the most sustainable companies and those that have the most long-term development potential as their investment alternatives. 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.

Screening and dialogue

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.

Exclusion - the last resort

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.

See the list of excluded companiesOpens new window.

Carbon footprint

We report the carbon footprint of those of our funds for which it can be calculated. Reporting the carbon footprint is the next step in increasing the transparency of our funds.

Carbon footprints of funds

Carbon footprints of funds

 

A carbon footprint can be measured in several connections. It means the amount of carbon dioxide emitted by an industry, a product or even an individual person. We display the carbon footprints of our funds when this information is available for at least 75% of the fund’s investments.

The carbon intensity measure we use gives us a picture of how much carbon dioxide or other greenhouse gases have been emitted during the past 12 months by the companies or bond issuers in which the fund invests. The figure is expressed as tonnes of carbon dioxide-equivalent (CO2-e) emissions per million US dollars of the company’s or issuer’s revenue.

The calculation is based on data provided by the companies themselves, most often in their annual reports, and on their emission estimates. Data on the companies’ carbon footprints are collected and provided by MSCI Inc. and ISS Ethix. The carbon footprint figures on our funds pages are updated monthly.

Other greenhouse gases also included
Calculating the carbon footprint
Which funds can be compared?
Updates, criteria and data
What is not measured

Contact Nordea Customer Service  

Mon-Fri 8.00 - 18.00

0200 70000 (lnc/mcc*)

* local network charge/mobile call charge