Engagements

2020 in a nutshell

When we want to improve how a company manages its ESG risks, we initiate an engagement process with it. The timeframe of the engagement process can vary depending on the complexity of the engagement objective. In 2020, we engaged in 924 dialogues with companies in the investment portfolio to ensure that material ESG risks were being adequately managed, or ESG opportunities were being fully harnessed. This marks a significant increase in the number of engagements from the almost 600 that were held in 2019, albeit now in digital format due to the covid-19 pandemic.

Supporting companies in delivering real change

Our engagement strategy is expressed in the new Fossil Fuel policy for sustainable Nordea Funds from 2020, which supports companies in their transition to fulfilling the Paris Agreement. The aim of the policy is to enable staying invested in, and to support, companies in delivering real change, while making clear that as, a major investor, Nordea Funds will start an exit process from companies that are not in transition.

Henrika Vikman, Head of Nordea Funds, explains why Nordea has chosen not to pursue an exclusion strategy: 

“What we try with the policy is not just to exclude all fossil companies – which – if the real aim is to limit the amount of greenhouse gas emissions as fast as possible – does not produce any real-world impact. Nordea’s approach to support the companies transitioning is balanced – it takes into account that we will not get rid of fossil companies by just shifting the responsibility to the next investor. But on the other hand, the companies need to present a transition strategy that puts them on a credible path to complying with the Paris Agreement – and then to stay on that path.” 

"Our approach is to encourage the companies responsible for the highest emissions to transition in due time. This is a logical step for us to take as active owners in our endeavour to make a real difference and help to tackle climate change. It also makes sense in terms of maximising risk-adjusted returns on our investments.”  

Covid-19 action

Investor expectations on pandemic response and recovery

In the wake of the covid-19 pandemic, Nordea Asset Management (NAM) signed and communicated to companies several investor statements setting out its expectations concerning how industries, such as meat processing and pharmaceuticals, should respond to the ongoing pandemic. It also sent an open letter to EU leaders from investors on measures needed for a sustainable recovery from covid-19.

 

What is Nordea Asset Management?

Nordea Asset Management is one of the largest asset managers in the Nordics with a global presence in Europe, the Americas and Asia. Nearly one third of assets are managed in ESG STARS strategies.

Henrika Vikman
Henrika Vikman, head of Nordea Funds.

What is Nordea funds?

Nordea Funds is the largest fund manager in the Nordics, owned by Nordea Bank Abp. Its focus is to actively manage funds and base decisions on business insights, analysis and sustainable criteria. 

Share links

Windmills and tanker in open sea

Active ownership

140 Nordea funds tighten requirements for investments in fossil fuels

140 Nordea funds are now tightening their requirements for fossil companies and are only investing in those that are on a green transition path.

Read more
Ylva Hannestad

Sustainability

Lending and investments in fossil energy

Society is now facing the next great shift, to sustainability. The path to a sustainable future is more important and urgent than ever. The world needs to build a new low-carbon economy and banks will play a vital role in this.

Read more
Technicians standing on transfer vessel deck

Insights

ESG ratings: what you need to know

ESG ratings have grown in popularity as a way for investors and other financial stakeholders to assess companies’ environmental, social and governance performance. What goes into these ratings, and why do they matter?

Read more