Responsible Investment approach
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Our Transition Focus Strategies – Widening our horizons We truly believe that engagement can support companies transitioning to more sustainable business models. Nordea 1 – Global Climate Transition Engagement Fund In 2022, Nordea launched the Global Climate Transition Engagement strategy, which targets companies in sectors often overlooked by the market due to their less favorable carbon emission profiles. Despite this, we recognize that these companies can play a pivotal role in the energy transition. Our team at NAM, identifies opportunities for real-world decarbon- ization through a structured engagement approach with these businesses. We believe that many of these companies simply need the right guidance and expertise to unlock their ecologi- cal potential, reveal their hidden value potential, and attract investments. As such, engaging on material environmental issues forms the core of our investment process. We've exe- cuted more than 220 substantive engagements with portfolio companies over these three years, driving meaningful dialogue on climate transition strategies, emissions reduction targets, and sustainable business practices.
We have also developed a Forward Decarbonization Tool to assess companies' potential future greenhouse gas emissions trajectories, enhancing our systematic consideration of decar- bonization paths. This proprietary tool provides a forward- looking view of direct (scope 1) and indirect (scope 2) emis- sions. Our conviction in decarbonization and climate transition investing has strengthened, as we see growing interest and investments in this area. We believe our climate capabilities will continue to support our dual objective of generating share- holder value while contributing to a greener future. 26
26) There can be no warranty that an investment objective, targeted returns and results of an investment structure is achieved. The value of your investment can go up and down, and you could lose some or all of your invested money.
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