LUXEMBOURG, 10 March 2021—A wide number of Nordea funds (140) are tightening their requirements on fossil companies and are only investing in companies that are on a green transition path. In short, the energy companies must have a clear plan for how they intend to comply with the Paris Agreement, and they must visibly have started implementation.
“No oil and gas producers and of course coal miners live up to these requirements at present, but quite a few electricity companies do,” explains Eric Pedersen, Head of Responsible Investments at Nordea Asset Management (NAM), the largest asset manager in the Nordics.
The initiative is the next step for NAM in its investment strategy for limiting global warming, as it has committed to do as a founder member of the international Net Zero Asset Managers initiative.
“The key measure to limit global warming is to reduce emissions from fossil fuels. The energy companies must have a strategy for complying with the Paris Agreement and limiting emissions from fossil fuels – and they must have started the hard work of changing their business model,” says Eric Pedersen.
At the same time, tobacco companies will be excluded from the 140 funds. All in all, most of Nordea’s funds – over 200- will now be aligned with the stricter fossil-related restrictions. Nordea’s new requirements come into force on 10 March – the same day as the first part of the EU’s new Sustainable Finance Disclosure Regulation (SFDR) takes effect.
About Nordea Asset Management. Nordea Asset Management (NAM, AuM 254bn EUR*), is part of the Nordea Group, the largest financial services group in the Nordic region (AuM 354bn EUR*). NAM offers European and global investors’ exposure to a broad set of investment funds. We serve a wide range of clients and distributors which include banks, asset managers, independent financial advisors and insurance companies. Nordea Asset Management has a presence in Bonn, Brussels, Copenhagen, Frankfurt, Helsinki, Lisbon, London, Luxembourg, Madrid, Milan, New York, Oslo, Paris, Santiago de Chile, Singapore, Stockholm, Vienna and Zurich. Nordea’s local presence goes hand in hand with the objective of being accessible and offering the best service to clients. Nordea’s success is based on a sustainable and unique multi-boutique approach that combines the expertise of specialised internal boutiques with exclusive external competences allowing us to deliver alpha in a stable way for the benefit of our clients. NAM solutions cover all asset classes from fixed income and equity to multi asset solutions, and manage local and European as well as US, global and emerging market products. *Source: Nordea Investment Funds, S.A., 31.12.2020
* There can be no warranty that an investment objective, targeted returns and results of an investment structure is achieved. The value of your investment can go up and down, and you could lose some or all of your invested money.
**Nordea screens out companies with poor environmental records, unfair treatment of workforce, ow where management structures and oversight don’t meet high standards. We also have restrictions around weapons manufacturers, oil sands and coal extractors.
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