01 Jul 2016 14:37

Reduced coal exposure in funds from 1 July

From 1 July, SEB's fund companies are taking a stricter approach to companies involved in thermal coal extraction, and increases the work of influencing energy-related companies with high dependence on coal as an energy source. "This is another step in our effort to integrate sustainability in the fund management," says Peter Branner, head of SEB’s fund company Investment Management.

During the spring, SEB's fund management companies decided to reduce the coal exposure in their Sweden- and Luxembourg registered funds. One part of this decision means excluding companies involved in thermal coal extraction, ie mining activities, where coal accounts for more than 20% of the company's or group's turnover. The second part involves increasing the active ownership through dialogues with energy-related companies, where coal as an energy source exceeds 10%.

"We see a continued interest in sustainability issues from our customers, why this is an important stand. The main part of our investments is already today based on these guidelines, but nevertheless this is a clear signal regarding future investments," says Peter Branner.

From 1 July, this is implemented for SEB's actively managed equity and fixed income funds, while index funds will implement this during the fall when they are rebalanced.

SEB offers both sustainability funds and green bond funds, which focus on a number of sustainable factors, including carbon emissions. All of SEB's sustainability funds exclude coal, oil and gas extraction sectors, while SEB Green Bond Fund focuses on "green" projects with a positive impact on the environment.