By integrating sustainability into all our investment decisions, we can create value for our customers. As an asset manager, we have a responsibility to contribute to sustainable development by investing in companies and other assets that can contribute to the transition to a more sustainable economy. We are convinced that companies that work in a structured way with sustainability will be more successful in the long term and thus have the opportunity to over time generate higher returns on investment for our unitholders.
We work according to the strategies; include, exclude and engage, and it is within the framework of these that we realize our sustainability work. Within each strategy, it is clarified which criteria we work according to and how our analysis work is carried out. We apply the same sustainability strategy to all funds we manage, as far as the funds' investment strategy allows. This means that in the future we will not make a difference between “sustainable” and other funds in our fund offering and therefore several of our fund’s names will be changed in 2021.
Our ambition is to accelerate the reduction of the global economy's greenhouse gas emissions while maintaining our commitment as asset managers, to deliver good, risk-adjusted returns in the long term. To limit global warming to 1.5 ° C above pre-industrial temperatures, communities and companies must reduce their carbon dioxide emissions and reach net zero emissions by 2050. Our goal is for SEB Investment Management's total assets under management to be invested carbon neutral in 2040, which is part of the climate strategy we launched at the beginning of the year. The strategy also means that investments in companies that contribute to solutions to sustainability challenges or enable transition to a more sustainable economy must increase. This work will be central to implementing the strategy for our sustainability work as set out in our sustainability policy. The sustainability policy means, among other things, that we introduce uniform exclusion criteria for all SEB's funds and that all funds exclude fossil fuels. Read more in our Sustainability Policy and Our position on the Climate issue.
To create a basic view of all potential investments' risks, adverse impacts and opportunities in terms of sustainability, we use our own sustainability model. The purpose of the model is to provide a relevant, significant and forward-looking individual sustainability assessment of all companies in which we invest, through a systematic process. Read more about how we integrate sustainability under "integrate".
We apply the same strict exclusion criteria in all funds, which means that our funds exclude companies that produce fossil fuels, among other things. Read more about our criteria under "exclude".
We conduct hundreds of engagement dialogues annually with the companies we invest in and exercise our active ownership. It also means that we vote at shareholder meetings and participate in nomination committees. Read more about our active ownership under "engage".
Integration – In terms of fund management, we put considerable significance on identifying and searching for exposure to important sustainability themes. We focus for example on investing in companies that actively encourage reduced environmental impact.
Read more about how we integrate
Active ownership – Via our role as active shareholder and influencing companies in their sustainability activities, and thus encouraging change, we aim to safeguard our unitholders' interests.
Read more about how we exercise our active ownership
Exclusion – In terms of fund management, we exclude investments in companies that operate in specific sectors or business areas that are assessed to have adverse impacts and/or face major sustainability challenges.
Read more about how we exclude
Discretionary portfolio management
SEB Investment Management conducts discretionary portfolio management. SEB IM only has customers who are judged to be professionals and the sustainability criteria are set in each individual contract.
SEB Investment Management is authorized to provide investment advice regarding financial instruments and other assets that SEB IM manages. Furthermore, SEB IM provides advice regarding investments in real estate. SEB IM only offers advisory services to institutional investors, who are judged to be professionals, and the sustainability criteria are set in each individual contract.
SEB Investment Management has adopted a remuneration policy that, among other things, regulates variable remuneration within SEB IM. In order not to create inappropriate behavior and contribute to excessive risk-taking, sustainability risks are one of the risks that are taken into account in the event of payment of variable remuneration.