Nordea puts investments in Facebook on hold for Stars funds

Nordea
18-03-21 12:15 | Sustainability

Nordea’s Responsible Investment team has decided to put a temporary hold on investments in Facebook for the Stars funds. The investment quarantine means the fund managers of Star funds aren’t allowed to buy shares in Facebook during a three-month period.

“We have, of course, been aware of ESG-related risks in Facebook and other companies in the same business for some time. A thematic report was initiated in late 2017, specifically addressing data privacy risks, among other issues, within the tech-space. We’re now pulling the brake because we see that the risks related to governance around data protection may have been severely compromised. In conjunction with this, the increased regulatory risk dictates that right now, it is incompatible with the level of clarity we want to have with our investments in the STARS funds. Until we’ve had time to fully assess the breath and width of this problem, we choose to quarantine the company” said Katarina Hammar, head of Nordea’s Responsible Investment unit.

The Stars fund family, which invests in companies with top-of-class environmental, social responsibility and governance profiles, currently comprises six funds, of which five are share funds and one is a fixed-income fund. Investments in Facebook have been made through the Nordea Global Stars fund, in which Facebook is currently 1,98 percent of the total holding.

An assessment of the situation will be made throughout the quarantine period and a decision will be based on the findings. While fund managers aren’t allowed to buy shares during the quarantine, they are allowed to sell off the shares already held.

Latest news by Nordea

Showing 5 of 273 results

Looking for job during online

Notice to Nordea’s Annual General Meeting and additional webcast for shareholders afterwards

About Nordea

Nordea’s Annual General Meeting (AGM) will be held on Wednesday 24 March 2021 at 14.00 EET in Helsinki. Due to the coronavirus situation it is not possible t...

Nordea On Your Mind: E-commerce and corona

Markets and investments Nordea podcasts

In the latest issue of Nordea On Your Mind, we explore the COVID-19 pandemic's disruption of business models and turbocharging effect on e-commerce.

Euromoney survey logo

Nordea best at Private Banking in Euromoney 2021 survey

About Nordea

Euromoney has named Nordea as the best provider of Private Banking services in Nordic region and the Baltics in their annual private banking survey.

António Guterres

Nordea speaker when asset owners met with the UN Secretary-General on new climate commitments

Sustainability

Nordea Life & Pensions is one of the founders of the alliance and was represented at the meeting by Katja Bergqvist, Nordic CEO of Nordea Life & Pensions. Sh...

Man with umbrella

Currency volatility ahead – SME’s should assess and manage currency risks immediately

Economic outlook

Too many small and mid-sized companies continue to underestimate their currency risks, according to a recent Nordea study.

Showing 5 of 273 results