Some types of weapon are not compatible with international conventions and guidelines. This is why SEB funds do not hold shares in companies that manufacture, develop or sell controversial weapons, including antipersonnel landmines, cluster weapons, chemical weapons and biological weapons. Additionally, we do not invest in companies that participate in the development of nuclear weapon programmes or produce nuclear weapons. SEB funds do not invest in listed companies whose turnover from the extraction of thermal coal exceeds 5 percent or companies producing cannabis for recreational use. Additionally, no investments are made in companies or company groups that produce or distribute tobacco products. The goal is to completely exclude companies that produce tobacco. Thus the maximum turnover for a company is 0%. The maximum turnover for a company that distributes tobacco is 5%. Moreover, we do not invest in companies that verifiably breach international norms and conventions regarding labour legislation, anti-corruption, the environment or human rights, and where we do not see any impetus to address the problems. We especially consider the UN Global Compact (unglobalcompact.org) and the OECD's Guidelines for Multinational Enterprises (oecd.org).
In order to ensure our sustainability criteria are met, we perform half-yearly follow-ups of the fund holdings with our advisor ISS-Ethix.
The following companies are excluded from all of our funds with regards to controversial weapons, nuclear weapons, thermal coal, tobacco, cannabis and international norms
The 28 November 2019 SEB´s Fund Management Company decided to strengthen its sustainability policy by sharpening the exclusion criteria regarding tobacco and thermal coal as well as excluding companies producing cannabis for recreational use from all funds. The new criteria will be implemented and reflected in all funds and information material progressively. Our ambition is to have fully implemented the changes during the first quarter 2020.
Exclusion in ethical and sustainable funds
In addition to our basic ethical and sustainable criteria, as described above, our ethical and sustainable funds do not invest in corporate groups with more than 5 percent revenue derived from alcohol, weapons, commercial gambling or pornography.
Our sustainability funds do not invest in companies that extract coal, gas or oil.
Exclusion SEB’s Strategy and Pension Funds
We also offer funds that follow our core sustainability criteria, the Management Company's core criteria, as well as additional sustainability criteria for parts of their investments. The funds SEB Fund 3 - SEB Pension Fund, Pension Fund Plus and SEB Pension Fund Extra, as well as SEB Strategy Fund - SEB Strategy Defensive, SEB Strategy Balanced, SEB Strategy Opportunity and SEB Strategy Growth, follow the Management Company’s highest level of sustainability when they invest directly in equities and fixed-income securities. In terms of investing in SEB funds, such as hedge funds, the funds aim to follow as minimum our core sustainability criteria. When the fund invests in externally managed funds, we require the external fund manager to sign the United Nations Principles of Responsible Investment or to follow an equivalent sustainability framework.
Effects of exclusion regarding different fund categories
We aim, as far as possible to apply our basic exclusion sustainability criteria - the Management Company's core criteria - to all our fund categories. In the document below you can find information about how different fund categories are affected, such as index funds and fund-of-funds.
How sustainability affects our funds