ESG highlights
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ESG highlights of the year
In 2024, we remained focused on reinforcing our ESG credentials and capabilities. We strengthened our position in impact investing by subscribing to the Operating Principles for Impact Management (OPIM) and adhering to the GIIN initiative. We continued to drive real- world decarbonization through our climate strategies and proprietary tools.
Playing our part in real world decarbonisation Investors increasingly recognize climate change as a global crisis threatening the environment, society and economy. The last few years we have seen important steps towards adopt- ing climate policies with a positive impact on achieving net zero emissions targets by 2050. At Nordea Asset Manage- ment, we do not believe we can achieve net zero purely by avoidance and exclusion. Climate change has been a strategic focus for us since becoming a signatory to the UN-supported Principles for Responsible Investment (PRI) in 2007. In 2024, we have made our proprietary Forward Decarbon- ization tool available to all our investment boutiques. This tool offers a forward-looking view of companies' potential decarbonisation trajectories, helping portfolio managers make informed decisions on engagement and allocation to meet strategy-specific decarbonisation objectives. Our commitment to climate action was further recognized in late 2024 with our Methane Engagement Campaign receiving the 'Recognition for Action – Climate' award at the PRI Awards ceremony in Toronto, Canada. Expanding our capabilities In 2024, we have expanded our Sustainable Thematic offering and launched two Article 9 Labelled Bond Funds: Nordea 1 – European Sustainable Labelled Bond Fund and Nordea 1 – European Corporate Sustainable Labelled Bond Fund. These funds help asset allocators build sustainable fixed income port - folios and demonstrate NAM's commitment to ESG innovation. Moreover, our Responsible Investments team have developed a proprietary Sustainable Investments (SI) approach to sustain- able labelled bonds to ensure SFDR compliance and maintain high standards, using sophisticated models to evaluate ESG credentials of issuers. During 2024, we onboarded Iceberg Data Lab as an additional
biodiversity data provider, enhancing our commitment to bio- diversity and nature through their Corporate Biodiversity Foot- print (CBF) offering. The CBF quantifies a company's biodiver - sity impact by analyzing factors like land use, climate change, and pollution, providing investors and corporations with actionable insights for integrating biodiversity considerations into investment decisions and risk assessments. We're continu- ously reviewing new data sets and data providers to enhance quality and biodiversity and nature-related assessments. Additionally, we have set a corporate exclusion on palm oil: NAM does not invest in palm oil producers 10 that lack an RSPO certification target for their holdings and estates. Furthermore, companies with an RSPO target but less than 50% RSPO certi - fication 11 are also restricted. Maintaining our ESG credentials Our 35+ years of experience in sustainable investing continues to earn recognition. In 2024, we ranked 4th global asset man- ager ESG Brand in the RIBI Report, demonstrating our com- mitment to responsible investing and sustainable development. Additionally, our Nordea 1 – Global Impact Fund won "Fund of the Year – Listed Equity" at the Environmental Finance Impact Awards 2024. Our credentials extend to international ESG-labels and in 2024, we have secured Label ISR and Towards Sustainability labels for some of our funds, recognizing our ESG products. We maintained our UK Stewardship Code signatory status, meet- ing the highest disclosure and reporting standards in the UK. On top of this, all our funds received ESG4Real certification, confirming compliance with basic RI demands, including exclu - sions, norms, conventions, ESG criteria and engagement that asset managers shall comply with. Additionally, some funds obtained Nummus Ethics Certification, aligning with CEI's ethi - cal guidelines. 12
10) Palm oil producers are defined as having >10% revenue threshold from palm oil. 11) RSPO: Roundtable on Sustainable Palm Oil. 12) CEI´s ethical guidelines: CEI Guidelines - Nummus.Info.
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