As part of Nordea Asset Management’s ambition to deliver returns with responsibility, we have created several funds with a special sustainability focus. The funds mentioned below are some examples of the funds with sustainability focus that we have created. The fund offering differs between countries. If you are interested in which funds that are available and suitable for you and your needs please contact your advisor or visit your local Nordea site.
Sustainable Selection is a label for Nordea’s most sustainable investment products, for example the Stars Funds and the Global Climate and Environment Fund where customers obtain well diversified portfolios with an extra layer of sustainability in addition to the sustainability threshold applied to all our funds.
The Stars empower investors to make a difference by investing in responsible companies.
In the Stars funds, we proactively select high-quality ESG companies rather than negatively screening out poor ESG industries. We do this through a combination of ESG analysis, company dialogues, thematic research, engagement and field trips. The analysis is conducted in-house for every potential investment and updated annually for the Stars holdings to ensure high quality.
The core elements of the ESG research and analysis are devised to provide insight and understanding in terms of overall governance structure regarding management of relevant ESG aspects, how companies address and manage the most material ESG risks and opportunities with respect to their key stakeholders, and how companies position their products or services in relation to broader sustainability megatrends. Read more about ESG or watch the video.
The Stars concept is about finding tomorrow’s winners
We believe that awareness of and adaptability to ESG challenges will form a key enabler for a company to survive the sustainability challenges ahead.
In that sense, the Stars concept is all about finding tomorrow’s winners, which – from our point of view – will be companies with sustainable business models and the ability to conduct their business responsibly in relation to their stakeholders – employees, suppliers, customers, investors and society at large alike.
Global Climate and Environment Fund
Climate solutions that drive returns.
Investing in resource efficiency is a vital part of making the transition to a more sustainable society. Companies that use their talent and innovation to make a positive difference can generate attractive returns.
Since 2008, Nordea has been at the forefront of this megatrend with the Nordea 1 – Global Climate and Environment Fund:
• Invests in companies which, through their climate solutions, are changing the world for the better – because saving electricity is as important as generating clean electricity
• Focuses on businesses operating in resource efficiency, environmental protection and alternative energy
• Provides attractive returns by recognising the research gap in this area and delivering a concentrated portfolio of high-conviction investment ideas
In the Stars process, after thorough analysis, every company is assigned an internal ESG rating and must pass a certain rating threshold if we are to invest in it.
The rating scale is based on a three-degree format – A, B and C, where A is the highest possible rating and C the lowest. The rating accounts for how well a company performs across five pillars – business model, business ethics, corporate governance, social aspects and environmental aspects.
A positive trend sign (+) indicates that the company has a positive ESG outlook. Furthermore, it has taken key steps since our last review and continues to demonstrate strong initiatives to excel in terms of managing ESG risks and focusing on opportunities.
A negative trend sign (-) indicates that the company has a negative ESG outlook. Material incidents have occurred since the last review, or a change in company structure or business that increases risk profile without adequate initiatives undertaken by the company to address the changes.
* ESG is an abbreviation of Environmental, Social & Governance and is commonly used in the context of addressing ESG aspects.
Note that a fund’s past performance is no guarantee of future return. The value of fund units may rise or fall due to market movements, and it is not certain that investors will get back the entire amount they invested. Comprehensive information regarding Nordea’s funds is available in the key investor information documents and information brochures for the funds. Key investor information documents, information brochures and full-year and interim reports are available at nordea.se/fondinfo and Nordea branches. This material is only intended as general product information. It should not be regarded as investment advice or a recommendation to invest, and should not be used as a basis for investment decisions. Investors should always read a fund’s key investor information document and information brochure/prospectus, and contact a Nordea branch prior to investing in a fund.