NORDEA ASSET MANAGEMENT
Source: Nordea Investment Management AB. Note: For illustrative purposes only.
and the effect of companies’ activities on climate change alike. Our assessment of the business model is weighted at 30% in our internal scoring process. Second, we evaluate a company’s ability tomanagematerial ESG issues in relation to stakeholders, such as employees, suppliers, customers, communities, regulators, and the environment. A key part of our process is identification of financially material ESG issues – those which are likely to influence the financial performance of the company. We weigh these issues flexibly, according to their materiality for the specific sector. We use the SASB Materiality Map as a guideline to determine materiality, but we supplement it with our own insight into the workings of the company.
The SASB Materiality Map helps us to identify the key issues which are relevant for the company under the ESG Scorecard columns of business ethics, environment, and social. The company’s industry is used to identify the most material topics according to the Materiality Map. However, if the company has significant operations in other industries, then several different topics may be included in the scorecard. The role of engagement We believe that improved management of sustainability risks and opportunities is vital to creating returns with responsibility, and that engagement can result in a
3 | SASB STANDARDS INTEGRATION CASE STUDY
SASB.ORG/INVESTOR-USE
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