ESG Focus Areas
31
Biodiversity
As the largest Nordic asset manager, we acknowledge our crucial role in preventing biodiversity loss and directing capital towards nature-positive solutions.
Since signing the UN Principles for Responsible Investment in 2007, NAM has been actively engaging with portfolio compa - nies on biodiversity and nature-related risks and opportunities. Biodiversity loss prevention is one of our four core focus areas, influencing investment decisions and potentially leading to engagement with high-risk companies. In 2024, 18% of our total engagements focused on biodiversity-related topics. Please refer to our Biodiversity Report to learn more about how we consider and integrate biodiversity across all our portfolios. At NAM, we employ Encore to assess impact and dependen- cies across our portfolio, guiding our engagement selection process. This approach addresses biodiversity risks and opportunities, informs ESG research, and guides our portfolio managers. We also participate in investor initiatives to enhance biodiversity risk education and management, engaging with issuers and policymakers to support these efforts. Moreover, during 2024 we have onboarded Iceberg Data Lab as an additional biodiversity data provider to ensure quality and coverage in fulfilling our commitment to biodiversity and nature. We are continuously reviewing new data sets and data providers to enhance quality and biodiversity and nature-related assessments.
critical for biodiversity protection and restoration. NA 100 calls on companies to take six key actions: Ambition, Assessment, Targets, Implementation, Governance, and Engagement. To support investors in understanding and managing mate- rial nature-related financial risks and opportunities, NA 100 has developed a benchmark measuring progress on these six actions and related indicators. In 2024, Nordea Asset Manage- ment (NAM) actively participated in seven corporate engage- ment streams across several sectors. Investors Initiative on Hazardous Chemicals (IIHC) The IIHC's primary objective is to mitigate the adverse impacts of hazardous chemicals and their associated financial risks. This initiative is particularly significant as chemical pollution ranks as the third greatest cause of biodiversity loss, surpass- ing even climate change in its impact. Ecologists warn that fail- ing to address the negative effects of chemical pollution could severely undermine efforts to protect biodiversity and reverse current losses. We have been actively participating in five IIHC engagements with our investee companies, contributing to the initiative's goals and promoting more sustainable practices in the chemicals industry. Finance for Biodiversity Pledge In 2021, we sharpened our focus on biodiversity by joining the Finance for Biodiversity Pledge – a commitment from financial institution signatories to protect and restore biodiversity through their finance activities and investments. Being part of this initiative has enabled us to work together with other investors and finan - cial industry participants to set standards linked to biodiversity.
Our engagement campaigns Nature Action 100
NA 100 is an investor initiative representing over 200 investors with more than USD 26.6 trillion in assets under management. The initiative focuses on key sectors crucial for reversing nature and biodiversity loss, targeting 100 companies identified as
Some of our Biodiversity engagement Initiatives:
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