This fund promotes environmental and social characteristics but does not have sustainable investments as its objective. In promoting environmental and social characteristics, the fund takes into account the environment and climate, as well as human rights, employee rights and equal opportunity.
In the promotion of environmental and social characteristics, the fund may also invest in sustainable investments, in accordance with the assessment method applied by the Management Company.
What are the objectives of the sustainable investments that the financial product partially intends to make and how does the sustainable investment contribute to such objectives?
The fund’s sustainable investments are made primarily in other funds, in sustainable bonds or in companies (as well as bonds issued by companies) whose economic activities are considered as having a positive impact on the attainment of one or several environmental or social objectives, alternatively, the company is involved in activities aligned with the EU Taxonomy. Environmental and social objectives are defined based on the Sustainable Development Goals in Agenda 2030.
Sustainable investments contribute primarily through investments made directly as well as indirectly through funds in companies or issuers that support the Sustainable Development Goals or activities aligned with the EU Taxonomy by exceeding a minimum level of revenue in the company in line with the Sustainable Development Goals or the EU Taxonomy or a combination thereof. In addition to company revenue, the capital expenditures or operational expenditures (CAPEX/OPEX) can be used to assess a company’s contributions to the objectives. Sustainable investments also contribute through investments in sustainable bonds in which the borrowed capital is used to finance projects with an environmental or social objective. Even so-called sustainability-linked bonds can be considered as contributing to the referenced objectives in the case in which the financial and/or structural characteristics of the fixed income instrument are linked in some manner to pre-defined sustainability objectives.
For a company to be defined as a sustainable investment, an investment must not only contribute to the attainment of an environmental or social goal, but the investment must also not cause significant harm to any of the environmental or social objectives in addition to the company following good governance practices. The control to ensure that the company does not cause significant harm to any of the environmental or social objectives is based on two components: taking into account the principal adverse impacts on sustainability factors (PAI), as well as ensuring that the company does not significantly obstruct any environmental or social objective through its products and services. The fund applies the following principles to ensure adherence to the “do no significant harm” principle:
1. Exclusion criteria, directly and indirectly, through funds for companies with activities linked to controversial sectors as well as specific PAI indicators, such as fossil fuels and controversial weapons. 2. Exclusion criteria for direct and indirect investments through funds, in companies or issuers with verified violations of international norms and conventions.
3. Assessment that the investments are not considered to cause significant adverse impacts on sustainability factors (PAI). This is conducted through the Management Company’s internal PAI tool.
4. Assessment of what products and services in which the company is otherwise involved in, as well as if these can be considered as significantly obstructing a sustainable development. 5. Within the scope of the fund selection process for investments in other funds, an analysis and evaluation are conducted relating to how the fund manager ensures that the sustainable investments for each fund do not result in significant harm. The Management Company also conducts a screening of the holdings in the underlying funds, where possible, based on the aforementioned criteria. In the context of taking into account the PAI indicators, the Management Company conducts engagement work through dialogue and active corporate governance so that the companies manage their sustainability risks and any principal adverse impacts on sustainability factors. With respect to the Management Company’s assessment methodology for sustainable investments, including the assessment of the “do no significant harm” principle, read more in the Statement on Principal Adverse Impacts on Sustainability Factors, which is published on our website at
www.handelsbankenfonder.se. A description of the Management Company’s PAI tool is also available on the website.
In the context of taking into account the PAI indicators, the Management Company conducts engagement work through dialogue and active corporate governance so that the companies manage their sustainable risks and any principal adverse impacts on sustainability factors.
With respect to the Management Company's assessment methodology for sustainable investments, including the assessment of the "do no significant harm" principle, read more in the Statement on Principal Adverse Impacts on Sustainability Factors, which is published on our website at
www.handelsbankenfonder.se. A description of the Management Company's PAI tool is also available on the website.