What is Sustainable Selection?
Sustainable Selection consists of our leading sustainable products. In these, stronger emphasis is put on sustainability factors while targeting the same criteria and requirements as our other products concerning for example risk, return and costs.
- We have conducted basic screening for sustainability in all our funds, but the Selection products go a step further. The selection criteria are product specific – for example, some products are selected based on a more limited exposure to the coal industry and having a lower carbon footprint. Some are specially targeted at developing renewable energy.
- The Selection includes investment products both from the equity and fixed income markets.
- The Selection currently contains for example our own and our partners’ funds as well as Globe Baskets provided by Nordea Life. [to be adjusted locally] New products are continuously added.
- The Selection products can be used to build a sustainable, well diversified portfolio. By doing so you need not alter your preferred risk level. Your advisor will help you to ensure that the portfolio suits your risk level.
Products are carefully selected
There are no industry standards on sustainability yet. Therefore, we have created our own criteria for the selection process. We utilise our in-house expertise in combination with external quantitative data.
We have a separate process and team to analyse, select and approve products for the Selection. We first analyse each product provider to see if it, as a company, fulfils the sustainability criteria. After that we go through its products and analyse if any of them meet our sustainability requirements.
Costs and expected return in line with normal products
We believe that by combining financial analysis with sustainability analysis and by having enough portfolio diversification, you need not sacrifice your long-term returns when investing in Sustainable Selection.
The target is to achieve returns in line with the market, yet in a highly sustainable way, and at the same cost level. At the same time, risks related to environmental, social and governance (ESG) issues are smaller.