Some types of weapon are not compatible with international conventions and guidelines. This is why SEB funds do not hold shares in companies that produce or market controversial weapons, including antipersonnel landmines, cluster weapons, chemical weapons and biological weapons. Additionally, we abstain from investing in companies that develop nuclear weapon programmes or produce nuclear weapons. SEB funds do not invest in listed companies whose turnover from the extraction of thermal coal exceeds 20 percent. Moreover, we do not invest in companies that verifiably breach international norms regarding human rights, the environment, corruption and labour rights, and that, moreover, are not willing to solve the situations that cause the breaches. 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 and coal
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 turnover results from alcohol, tobacco, weapons, pornography or gambling business sectors.
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, SEB’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 fund 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 - SEB's core criteria - to all our fund categories. The document below describes how different fund categories are affected, such as index funds and funds managed by external fund companies outside SEB Group.
Definitions of percentage limits and how sustainability affects our funds