SEB Investment Management has developed its own sustainability model which, with several external and internal data sources, gives each potential investment a sustainability rating. The rating is based on risks, adverse impacts, opportunities, the global sustainability goals, carbon footprint and much more. It gives us the opportunity to create a basic view of each company's sustainability profile. The purpose of SEB Investment Management's sustainability model is to give each company an individual, relevant, significant and forward-looking rating. The sustainability rating will provide guidance on which future sustainability factors may have a negative impact on long-term risks and returns.
Our sustainability analysis means that we focus on specific sector risks, adverse impacts, products and services' sustainability and impact in relation to long-term sustainable value creation.
SEB Investment Management sustainability model is a dynamic tool that will be continuously developed over time to ensure the highest quality and adaptation to both scientific research and changes in legislation.
Read more in our Sustainability Policy and in our Climate Statement on how we work with identifying companies that contribute to the transition to sustainable development.
As part of the European Commission's Green Deal, there are several initiatives in the field of sustainable financing. As the financial market constitutes a crucial role in supporting the transition, several of these initiatives consist of mandatory rules that affect asset managers. According to the regulation, which is sometimes called the "disclosure regulation" or "SFDR" (from the Sustainable Finance Disclosure Regulation), we as asset managers must report on how our funds integrate sustainability risks and sustainability aspects from 10 March 2021.
The regulation categorizes funds according to three articles: Article 6, Article 8 and Article 9. Based on these categories, we at SEB IM have reviewed our funds and their investment orientations to assess which article they best correspond. Information about each fund's sustainability profile can be found in the fund list at our website in each fund's sustainability information.
Article 6: Funds that considers sustainability risks when making investment decisions and follow SEB IM's sustainability policy but due to their investment focus, methodology or investment universe do not have the opportunity to fully promote environmental or social characteristics.
Article 8: Funds that promote environmental or social characteristics. These funds invest in companies that work actively to manage risks and opportunities related to sustainable development from both an environmental and social perspective. The funds have a conscious openness to dialogue with companies regarding improvements, at the same time as companies that have a negative long-term impact on sustainable development are excluded.
Article 9: Funds that have sustainable investment as its goal. The purpose of these funds is to create a long-term sustainable effect by investing in companies that actively contribute to mitigating climate change, for example by investing in companies that provide climate solutions that reduce carbon dioxide emissions.