Responsible Investments Report 2021

Stepping into impact investing

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Stepping into impact and impact-oriented investing

Impact investing focuses specifically on driving change through investment. NAM is bringing to a wider range of investors new ways to make an impact.

Fund . This fund embraces the concept of an inclusive green economy by recognizing that a sustainable future cannot be achieved without solutions to both social and environmental issues. Our other new impact-oriented fund is the Nordea 1 – Global Green Bond Fund , which gives bond investors the opportunity to greenify their investment portfolios without jeopardizing their investment goals. Alongside the widening of our impact-oriented offering, we have started reporting the positive outcomes that our invest- ments generate. We now offer Impact reports for two of our ESG thematic funds, the Nordea 1 – Global Social Empower- ment Fund and the Nordea 1 – Global Climate and Social Impact Fund . These reports highlight how each company in our portfolio, through its products and services, makes a positive contribution to one or more of the 17 UN Sustainable Investment Goals (SDGs). To do this, we measure the percent- age of revenues generated by activities that make a direct and significant contribution to the SDGs tied to the business model, and we quantify elements of positive change generated by the product or service offered. These steps to bring the ability to invest with impact to a wider range of investors, especially to the traditional fund investor, are all part of bringing more options to clients as they seek ways to make the world a better place.

Inequalities around the world have been recognized far more widely since the Covid-19 pandemic, and the rise in popu- lar protests shows that people are desperate to bring about change. Investing with impact is one way to do this, and NAM has been developing its activities across this area. Recognising that impact investing is largely carried out by pri- vate market investors, in 2019 NAM opened up a new means to deliver a better future by partnering up with private markets industry veteran Jan Ståhlberg to create Trill Impact. Since then, Trill Impact has grown into one of the largest dedicated impact investing houses in Europe with over EUR 1 billion in assets under management across its private equity and microfinance investment advisory strategies. This partnership, combining NAM’s ESG & impact analysis expertise with the extensive PE experience of Trill Impact, is enabling the kind of change we wish to see in this world. One key way that we as an organisation can make a difference is by widening access to impact-focused strategies to a new group of investors. For us, this means bringing out new funds that invest in listed markets, enabling more traditional inves- tors (such as advisory and retail clients) to participate in invest- ments with impact. In 2021, building on the expertise we have developed through both the Global Climate and Environment Strategy and the Global Social Empowerment Strategy, we launched the Nordea 1 – Global Climate and Social Impact

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