Nordea comments on report about the Amazon
On 21 September 2021 the interest groups Fair Finance Guide, the Swedish Society for Nature Conservation and World Animal Protection published a report on Sweden’s seven largest banks and their links to businesses whose activities in turn can be linked to the Amazon.
Only investments in a few of the companies
The report examines 61 companies. Nordea has invested in six of these which, according to the report, is the lowest number among the banks which feature in the report. In addition, Nordea is the bank with the highest level of engagement in various initiatives to drive change in the sector, which is also mentioned in the report.
Not included in Nordea's sustainability funds
The report also mentions that some of the companies under examination are included in banks’ sustainability funds. However, it is important to point out that none of them are included in Nordea’s sustainability funds.
Active ownership – for a long-term sustainable development
Nordea takes a serious view on developments in the Amazon. This is clear as Nordea, which is also stated in the report, has decided to exclude companies where we do not see any willingness to change. To ensure a long-term sustainable development, Nordea always initially seeks to influence companies by being an active owner and this is emphasised as an important strategy in the report.
More about the holdings and Nordea’s approach
The report shows the size of the banks’ investments in the companies and in this respect, Nordea has invested the most. However, two companies represent more than 96 percent of Nordea’s total investment: Danone and Archer Daniel Midlands. Below is a description of how these companies are addressing the issue and what Nordea is doing to influence them in a positive direction:
Danone is a French dairy company, and it is included in the report due to its indirect exposure to the production of soy. However, the company has one of the most robust policies in this area and the independent organisation CDP has awarded Danone top scores for their forest and soy management. Danone has used TRACE to identify their greatest risk of indirect links to soy from deforested areas and have initiated a programme to manage this indirect risk.
Archer Daniel Midlands (ADM) is a global US agriculture company that Nordea is in regular dialogue with on various topics, including deforestation. Nordea has been clear about its expectations on ADM, including that they adopt a no deforestation policy with scheduled targets covering the entire supply chain and all countries, and that they ensure that their suppliers comply with the company’s requirements. Progress has been made and in 2021 ADM published a new policy committing to the elimination of deforestation throughout their supply chain by 2030. Our next meeting with the company will take place in early December.