RI Annual Report 2023

Our Responsible Investment approach


Responsible Investment framework

At NAM, we believe it is our fiduciary duty to deliver returns with responsibility. Our commitment to be a responsible asset manager is not new. We launched our first sector-screened fund in 1988 and we were an early adopter of Responsible Investment (RI), signing the UN Principles for Responsible Investment (PRI) back in 2007. Responsible Investment Solutions now comprise over 70% of NAM’s AUM.

NAM has developed policies and procedures to ensure that the companies we invest in meet our expectations related to ESG performance, and that ESG and sustainability risks are managed in all our investment processes. These include both corporate-level RI approaches ("overlays") and product-specific approaches. NAM’s RI Policy defines our position on sectors that are linked to material ESG issues, going beyond the inter- national norms and conventions. This helps to ensure that the companies we are invested in meet our expectations of sound ESG performance. The policy describes the stance we take on

a number of areas within human rights, climate change, bio- diversity and good governance. Depending on the nature and gravity of individual cases, breaches can trigger engagement or exclusion. The RI Policy is publicly available on our website. Our corporate-level RI overlays include norms-based screening, active ownership activities and NAM-wide exclusions, as well as Sustainability Risk Integration. We also have product specific RI approaches that take a step further into enhancing ESG integration.

A comprehensive RI Framework including various forms of RI

NAM total AUM € 251.0 bn

Nordea Asset Management corporate level RI “overlays” applicable to all funds

All actively managed funds € 203.69 bn

Sustainability Risk Integration 15

Norms-based screening

Active Ownership

Corporate-level Exclusion List 14

ESG products Article 8 and 9 funds – according to SFDR classification

~ 59% of total AUM € 149.28 bn

ESG STARS strategies € 17.49 bn

Our Flagship ESG strategies

ESG thematic € 10.38 bn

23 ESG STARS Strategies16

9 ESG Thematic Strategies

Source: Nordea Investment Management AB. Data as at 29.12.2023. 14) Over 260 companies. NAM’s Exclusion List available here. 15) Integration of Sustainability Risks in the respective funds decision-making process. Every investment boutique has access to NAM's proprietary ESG Model and ESG analysis from the RI team and ESG data from external providers via our proprietary ESG data platform. 16) As of 10.10.2023.

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