Our Responsible Investment overlays
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Exclusions
While our experience proves that active ownership can often be an effective tool to improve ESG performance, manage risk and identify opportunities, some types of economic activity or corporate behaviour are not compatible with our vision of returns with responsibility. Such companies are excluded as a matter of firm-wide policy. In addition, specific strategies have further screening criteria, corresponding to their level of ESG focus.
NAM excludes companies involved in serious breaches of international norms where engagement is deemed not to be possible or effective. For example, we ban investment in companies active in the production of controversial weap- ons, including – but not limited to – cluster munitions and anti-personnel mines as well as nuclear weapons. NAM also does not invest in companies deriving more than 10% of their revenues from thermal coal and excludes companies involved in the production of fossil fuels from oil sands (10% revenue threshold) or through arctic drilling (5% revenue threshold). For this purpose, we maintain a firm-level exclusion list that
applies to all Nordea-branded investment strategies 22 . Any addition to – or removal from – the list is decided by the RIC. Our exclusion list is publicly available here. In addition to the firm-wide exclusion list, a substantial and growing part of NAM’s strategies is also subject to our Paris- Aligned Fossil Fuel (PAFF) Policy, which excludes companies involved in fossil fuel production, distribution or services if they do not have a recognised strategy to achieve an emissions path that is consistent with the Paris Agreement’s goal. More details on our PAFF Policy can be found here.
NAM’s corporate wide ESG positions
Exclusions:
Enhanced due diligence on:
Biodiversity
Good governance
Controversial weapons
Board diversity
Government sanctions
Thermal coal mining (10% 23 ) Coal mining (30% 23 )
Climate change
Human Rights
Conflict areas
Soft commodities
Oil Sands (10% 23 )
Corruption
Tax transparency
Arctic drilling (5% 23 )
Deforestation
Water
22) With the exception of any holdings by such strategies in external funds and index derivatives and selected discretionary mandates on clients’ request. 23) Revenue threshold.
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