Our Responsible Investment approach
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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 66% of NAM’s AUM.
NAM has developed policies and procedures to ensure that the companies we invest in meet our expectations of ESG perfor- mance, 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 international norms and conventions. This helps to ensure that the companies we are invested in meet our expectations of sound ESG perfor- mance. The policy describes the stance we take on a number of areas within human rights, climate change, biodiversity and good governance. Depending on the nature and gravity of in-
dividual cases, breaches can trigger engagement or exclusion. The RI Policy applies to all NAM funds and is publicly available on our website. Our corporate-level RI overlays include norms-based screen- ing and PAI integration, active ownership activities, NAM-wide exclusions, as well as ESG integration. In the following sections we will discuss in more detail how these activities are carried throughout all our investments. We also have product specific RI approaches that take a step further into enhancing ESG integration. You can read more about these solutions on pages 35–37 in this report.
A comprehensive RI Framework including various forms of RI
NAM total AUM € 292 bn
Nordea Asset Management corporate level RI “overlays” applicable to all funds
All actively managed funds € 270 bn
ESG Integration 13
Active Ownership
Corporate-level Exclusion List 12
Norms-based screening
Corporate-level PAI Integration
ESG products Article 8 and 9 funds – according to SFDR classification
~ 66.5% of total AUM € 194.6 bn
ESG STARS strategies € 17.9 bn
Our Flagship ESG strategies
ESG STARS Strategies 19
ESG Thematic Strategies 5
ESG thematic € 12.4 bn
Source: Nordea Investment Management AB. Data as at 31.12.2021. 12) Over 260 companies. NAM’s Exclusion List available here. 13) Every investment boutique has access to NAM’s proprietary ESG Model and ESG analysis from the RI team and ESG data from external data providers via our proprietary ESG data platform.
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