Appendixes
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Thematic ESG strategies NAM’s thematic ESG funds all apply proprietary methods to identify companies that can be expected to contribute to, or benefit from, the ESG theme in question. Often, indepth re- search will reveal potential investee companies with activities in areas that are not reflexively associated with the theme of the strategy: For example, the holdings of the climate strategy are far broader than the traditional renewable energy and re- lated sectors usually associated with combating or adapting to climate change. Methods are optimised according to the spe- cific theme and may differ from product to product.
Paris Aligned Fossil Fuel Policy (PAFF) 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 Policy (PAFF), which sets thresholds for companies’ exposure to fossil fuel production, distribution and services and excludes companies that are involved beyond these thresholds if they do not have a documented transition strategy that aligns with the Paris agreement. Funds for which the PAFF is not implemented as a hard exclusion criterion, the PAFF acts as guidance for engagement. PAFF criteria also in- form the prioritisation of our top-down thematic engagements. The PAFF policy and list of Paris-aligned issuers can be found here. Sustainable Development Goals (SDGs) The Sustainable Development Goals (SDGs) are a collection of 17 global goals set by the United Nations General Assembly in 2015. The SDGs are part of Resolution 70/1 of the United Nations General “Transforming our World: the 2030 Agenda for Sustainable Development”. The goals are an urgent call for action by all countries – developed and emerging – in a global partnership. They recognise that ending poverty and other de- privations must go hand-in-hand with strategies that improve health and education, reduce inequality, and spur economic growth – all the while tackling climate change and working to preserve our oceans and forests.
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