Investing with focus on sustainability

When you invest with focus on sustainability, it means that you invest in funds that consider Environmental, Social and Governance factors (ESG), alongside financial factors. We believe that focusing on sustainability is a winning strategy in the long run. 

There are several reasons for considering sustainability when you invest:

Our recommendations 

Do you find it important to invest in companies that contribute positively to people and the planet?  Or do you want to reduce negative impacts on the environment and society from your investments? If so, we will recommend you an investment solution based on funds included in Nordea's sustainable selection. These are funds that we have assessed and selected based on our rigorous sustainability criteria alongside traditional financial criteria. 

Examples of things we look at in our assessment for Nordea Sustainable Selection are:

• Sustainability factors (ESG) are an integrated part in the investment process. 
• Controversial companies and companies working against sustainable development, are excluded. For example: coal and oil extraction, tobacco, gambling, pornography and alcohol. 
  
• Fund managers are active in using their power to influence the companies they invest in to move towards a more sustainable direction. 
  

Nordea's sustainable selection funds focus on investing in companies that apply sustainable business practices, respecting people and the planet.  However, there are companies that have not yet come as far in their sustainable journey, but that are relevant for the future and where we see a potential to improve. Therefore, we also offer funds that focuses on selecting companies based on their potential to be more sustainable over time, for example by reducing their emissions or improve their board gender diversity. These funds have active ownership at the core of the investment process, including dialogues with company management and voting at general meetings to promote sustainability and potentially generate excess return if they manage to  speed up companies' transition towards more sustainable activities .  We call this category of funds Nordea Sustainable Selection - Improve. 

Your sustainability preferences

It is important for us to design a savings solution that is tailored to you and your life. This includes your needs and preferences both in relation to financial and ESG risks and opportunities. To find a suitable solution for you, we will assess what’s important for you in these three areas:

• How companies contribute positively to people and the planet: A company can be considered sustainable if its products and services significantly benefit people and the planet. Examples of such products include low-cost medicines, healthy food and energy efficient technology. The company is however only considered sustainable if the production does not severely harm the environment and societies. It also needs to follow good governance practices. 
  
• How companies work to reduce their negative impact on people and the planet: This includes for instance the company’s climate impact (or emissions of greenhouse gasses) and level of gender equality onits board. It also includes if the company respects human and labour rights. Companies should also not be involved in controversial weapons. 
  
• How companies contribute to the EU’s environmental goals: The EU has specified activities that can be considered environmentally sustainable in the so called “EU Taxonomy”. This relates to companies’ activities within climate change, water and marine resources, circular economy, pollution prevention, and biodiversity and ecosystems. 
  

Learn more about how we integrate sustainability risks and manage potential adverse effects on the environment and society, in our investment advice and investment decisions.

For detailed information about each fund or investment solution, please visit the fund information page. There you can find information about each product’s ESG approach.