Exclusion

Our sustainability strategy helps us in choosing the best investments and avoiding unsustainable companies. Companies with norm violations are excluded, except during active dialogue.

We believe that our sustainability strategy aids us in choosing the best financial investments, but also in excluding investments in sectors and companies that do not address and mitigate their major sustainability challenges. Companies with verified breaches of international norms and conventions are also excluded. Exception from exclusion can be made in individual cases if we have an ongoing dialogue or, for other reasons, have insight into the company’s operations and transformation plans.

Fossil fuel exclusions

Our exclusion criteria align with the exclusion standards set by the Paris Aligned Benchmark (PAB). 

All funds exclude companies:

• which produce, extract or process fossil fuels, including Arctic drilling, fracking, tar sands and thermal coal mining
• which generate energy from fossil fuel sources, unless they have clear goals and demonstrate ongoing active conversion to renewable energy sources, in line with the Paris Agreement
• which derive more than
  • five per cent of total revenue from distribution linked to fossil fuels
  • one per cent of total revenue from distribution linked to coal
  • one per cent of total revenue from mining of metallurgical coal
• which revenues for services related to fossil fuels exceed 50 per cent of the total revenue
• which revenues for services and distribution combined exceed 50 per cent of the total revenue
  The exception is if they have clear goals and demonstrate ongoing active conversion from and reduced dependence on fossil fuels.

A limited and well-defined share of strategic reserve fossil power generation capacity may be considered as grounds for exemption from exclusions on a case-by-case basis.

Arms and Defence related exclusions

All funds exclude companies which:

• manufacture, develop, or sell controversial weapons in conflict with international conventions, for example cluster bombs, land mines, white phosphorus, and chemical and biological weapons
• are headquartered outside of a NATO country and are involved in the development, testing, production, manufacturing, acquisition, possession or stockpiling of nuclear weapons

In addition, the following exclusion criteria apply to a set of funds:

• companies that derive more than five per cent of their revenue from the development, production and service of combat equipment
• all companies involved in the development, testing, production, manufacturing, acquisition, possession or stock piling of nuclear weapons