Integration
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.
This is how we exercise active ownership
Past performance is not indicative of future results. The value of fund units/shares can rise as well as fall and you may not get back the amount invested.
As one of the Nordic region's largest asset managers, it is our responsibility to act long-term and as active owners. We are convinced that companies working in a structured manner with managing the environment, business ethics and social responsibility will be more successful.
A key aspect of our sustainability work is our active ownership. The purpose of our active ownership is to safeguard our customers' interests in ownership issues and to influence the companies in which we invest in their sustainability work.
Direct dialogues and collaborations to influence companies
In Swedish companies – where we many times are among the largest owners – we have direct dialogues with management and boards. The topics of such dialogues can, for example, be management systems, risks and opportunities linked to the environment and business ethics. In addition, we focus on remuneration programmes and diversity on boards, with women's representation as one example.
Regardless of the type of investment, sector or type of challenge, we will address the company's overall strategy and risk management, and expect open and transparent communication. We will also most certainly address one or several sustainability related issues – defined as twelve different engagement themes – depending on relevance and materiality in the specific case.
Our clients guide us in defining focus areas and valuable input when defining engagement themes going forward. In addition, the SDGs are considered paramount when formulating SEB Investment Management's long-term priorities and objectives. Our view is that the long term success of businesses is inextricably linked to the SDGs, since they create an economic context and society in which businesses can best thrive. Below are twelve prioritised themes. These are areas of great importance for us in order to identify risks, opportunities and issues of relevance and materiality when engaging with our investee companies or other investors.
Engagement themes
Environment
1. Climate change
2. Biodiversity
3. Water
4. Circularity
5. Pollution
6. Food supply chain
Social responsibility
7. Labour and human rights
8. Human capital
Governance
9. Excecutive remuneration
10. Board effectiveness
11. Strategy and risk
12. Ethics and anti-corruption
Partner-led dialogues
By collaborating with other investors, we can generate greater impact on companies outside of the Nordic region. We collaborate with different actors who conduct dialogues with companies in several different sustainability areas, often with a direct connection to the global sustainability goals. We also engage in thematic collaborations to drive issues that are important to our customers.
At the international level, when engaging with international holdings, we cooperate with Morningstar Sustainalytics, one of the world’s leading organisations in corporate engagement, and maintain continuous dialogue with corporate management.
Morningstar Sustainalytics conducted dialogues with 342 companies in which we held investments between July 2023 and June 2024, with a total of 464 engagements. These dialogues, part of Sustainalytics’ Stewardship Programs, focused on Net Zero, Biodiversity, Human Rights, Good Governance or other sustainability topics.
Institutional Shareholder Services (ISS) is another important partner, comprised of business solutions such as ISS ESG. ISS ESG also conducts proactive engagement dialogues based on several different themes, such as Net Zero, Biodiversity, Water and Gender Equality. During the last 12 months, we supported approximately 174 engagement dialogues led by ISS ESG.
The time perspective for our dialogues
The time perspective for our dialogues varies, depending on the issues being discussed and the industry and company in question. SEB Investment Management AB strives to complete the dialogues within 24 months, but is at the same time aware of dependencies, ownership issues and local conditions. Therefore, it is not uncommon for corporate dialogues to take longer.
Collaborative initiatives
We have joined several international collaborative initiatives to leverage the power of ownership influence, for example, in forums such as UN Principles for Responsible Investing (UNPRI), Institutional Investor Group on Climate Change (IIGCC), CDP (supporting disclosure of environmental impact), Climate Action 100+ (CA100+), and Investor Policy Dialogue on Deforestation (IPDD). We also participate in Swedish collaborative initiatives, such as the Investor Integrity Forum (IIF). Furthermore, we have joined Investor Initiative on Hazardous Chemicals (IIHC) and are also members of the Farm Animal Investment Risk and Return initiative (FAIRR).By collaborating with other investors in these contexts, we jointly represent a significant amount of assets under management, which gives us greater power to move things forward.
Work in Nomination Committees and with general meetings
We engage in corporate governance, for example through our participation in Nomination Committees in companies where we are large owners. Corporate governance includes issues relating to remuneration policies, incentive programs, capital structure and sustainability. Sustainability primarily includes our dialogues with companies and our advocacy work. We also participate in general meetings and exercise our funds' voting rights.
Our view is that companies that work actively with managing the environmental, social and business ethics effects of their operations will have a greater chance of being successful. A clear focus on sustainability therefore benefits the companies' long-term development. SEB Investment Management AB's Principles for Ownership Engagement and our Sustainability Policy act as a framework for how ownership issues are handled and describe the requirements we place on companies in which we invest.
Corporate governance includes issues relating to compensation for company management, incentive programs, capital structure and sustainability. In the Nomination Committee's work, we place specific emphasis on ensuring the right competence and diversity on the board. Achieving a more even gender distribution on the boards of listed companies has long been in focus. In the boards that were appointed at the 2024 AGMs, and where SEB Investment Management participated in the Nomination Committee, the proportion of women was 39 per cent. This is higher than the average on the Stockholm Stock Exchange, which is 36 per cent, which is the same level as before the AGM season. We cannot be satisfied with the outcome this year, as the representation of women on the boards did not increase.
At the same time, SEB Investment Management works toward a broad anchoring of the Swedish Code of Corporate Governance and collaborates with other institutions to achieve broad support for our issues.
Our Active Ownership Report contains an account for our ownership engagement and our voting disclosure portal (VDS Dashboard (issgovernance.com)) contains an account for our voting behaviour.
VDS Dashboard (issgovernance.com)
Voting report
For a detailed overview over our voting activities during the last 12 months, read the voting report found in the Active Ownership Report on page 16.
Number of engagements per SEB IM's themes – Morningstar Sustainalytics
Number of engagements per SEB IM's themes – ISS ESG
Exclusion
In our fund management, we exclude investments in companies that operate in sectors or business areas that are assessed to have adverse impacts or face major sustainability challenges.
SEB Investment Management AB is a wholly owned subsidiary of Skandinaviska Enskilda Banken AB. The fund company was formed May 19, 1978, with headquarters in Stockholm and organisation number 556197-3719.