Handelsbanken Fonder works with sustainability, including our ETFs, in three main ways: We include, we exclude and we influence companies through dialogue and active ownership.
A vital part of our sustainability work is to also actively work to encourage the creation of a wider range of indexes with sustainability criteria. Read more about our work with sustainability below.
All of our asset management is founded on a common value base, which is summarised in our policies for Shareholder engagement and Responsible Investments. This means that all of our funds exclude a number of controversial business operations such as banned weapons and nuclear weapons, as well as hold a restrictive position to coal mining and coal power generation. The funds also take into consideration international norms and conventions that include such areas as human rights, labour law, environment, and anti-corruption. Handelsbanken Fonder is a part of the Handelsbanken Group and through the Bank we are committed to following a number of voluntary frameworks, such as the UN initiative, Global Compact, and the UN’s Principles for Responsible Investments (PRI). These initiatives and guidelines provide guidance for our work.
Mutual funds with enhanced sustainability criteria
We also offer mutual funds with enhanced sustainability criteria that, from the outset, exclude companies in which the primary business operations are within controversial sectors such as alcohol, tobacco, cannabis, commercial gambling, weapons and military equipment, pornography and fossil fuels. The funds also avoid investing in companies that are regarded as contravening international norms and conventions. As a result, the funds do not invest in companies considered as violating international norms and conventions within human rights, labour law, environment, and anti-corruption.
XACT offers the following ETFs with enhanced sustainability criteria:
-XACT Norden (UCITS ETF)
-XACT Norden Högutdelande (UCITS ETF)
-XACT Obligation (UCITS ETF)
-XACT OMXS30 ESG (UCITS ETF)
-XACT Svenska Småbolag (UCITS ETF)
-XACT Sverige (UCITS ETF)
Historical yields are not a guarantee of future returns. A fund can both increase and decrease in value and it is not guaranteed that you will recover the entire invested amount. Note that a fund with risk level 5-7, as stated in the fund's fact sheet (KID), can vary greatly in value due to the fund's composition and management methodology. The prospectus, fund rules and KID are available under each fund in the fund unit price list. A summary of investors' rights
Note that Handelsbanken Fonder AB may decide to terminate the arrangements made for the marketing of funds outside Sweden.
Engagement - Dialogues
Dialogues are an important method for contributing to a sustainable development. This applies to proactive dialogues aimed at influencing companies to improve their sustainability efforts, as well as dialogues with companies that we feel have not complied with the international norms and conventions we respect.
We pursue engagement efforts primarily together with other asset owners and through sector-wide initiatives. Collaboration is a strength and sends clear signals to companies that we expect the issues to be taken seriously. The starting point for these dialogues is often suspected or confirmed violations of international norms and conventions. The dialogues focus primarily on the UN initiative Global Compact’s principle areas of human rights, labour law, environment and anti-corruption. Dialogues can also target special themes such as palm oils, antibiotics or the climate and are conducted within the scope of our international collaborations, e.g., PRI.
Engagement - Corporate governance
An active and responsible corporate governance in those companies we invest is an essential part of our assignment as an asset manager. The starting point for our work is our Policy for Shareholder engagement and Responsible Investments.
We expect those Swedish companies in which we invest to follow the Swedish Code of Corporate Governance. The code complements regulations and other rules by stating a norm for corporate governance that has a higher level of ambition, while providing the opportunity for justifiable deviations. In the same way, foreign companies should follow relevant statutes and also follow or provide an explanation for any deviations from the corporate codes applicable on the markets in which the companies are listed.
The Sustainable Development Goals
In September 2015, the UN’s General Assembly adopted Agenda 2030. This initiative includes 17 Sustainable Development Goals, with 169 sub-goals, with the aim of achieving a long-term, sustainable economic, social and environmental development that eradicates extreme poverty, reduces inequality and injustices in the world, and combats climate change. Consequently, Handelsbanken’s Sustainability Committee has analysed the 17 goals with the accompanying 169 sub-goals to determine which goals we will be focusing on in our business operations and how we can integrate these into our asset management operations. The analysis was conducted based on the degree of impact, both indirect and direct, identified risks and opportunities, as well as on the Bank’s most vital sustainability issues. As a result of the analysis, we will be focusing on the following six goals:
Decent work and economic growth
Sustainable industry, innovation and infrastructure
Sustainable cities and communities
Peace, justice and strong institutions
Read more about Handelsbanken and the Sustainable Development Goals here
Initiatives and collaborations
Principles for Responsible Investment was launched in 2006. It is a network of investors and service providers that work together with the UN, UNEP Finance Initiative and Global Compact to implement principles for responsible investment. Its aim is to promote responsible actions among institutional investors and to work for increased transparency and awareness of environmental, social and corporate governance issues in the companies in which these players invest. Handelsbanken became a signatory to the principles in 2009. PRI has more than 1,750 signatory members, from more than 50 countries, with total assets under management of roughly USD 70 trillion.
Read more about PRI here
In 2009, Handelsbanken signed the UN Global Compact, an initiative aimed at companies which advocates 10 principles based on international conventions. These principles, established in 2000, include human rights, labour law, the environment and anti-corruption.
Read more about Global Compact here
Other initiatives and collaborations
Read more about other initiatives and collaborations here