|
Listen to this story:
|
- Focused on Sustainability: SEB launches a global fund investing solely in sustainable companies, classified as Article 9 under EU regulations.
- Lower Carbon Intensity: The fund’s carbon intensity is about 50% lower than its benchmark, emphasizing its commitment to reducing greenhouse gas emissions.
- Diverse Investment Strategy: Targets 500 companies across 20 developed markets, offering global diversification while maintaining a strong sustainability focus.
SEB’s Sustainable Investment Commitment
SEB has unveiled the SEB Global Sustainable Companies Fund, a groundbreaking investment vehicle dedicated to companies that excel in environmental and social responsibility. As a pioneer in sustainable finance, SEB aligns this fund with the EU’s Sustainable Finance Disclosure Regulation (SFDR) as an Article 9 fund, underscoring its focus on sustainability.
Meeting Global Standards
The fund is designed to invest in companies that not only avoid significant harm but also actively contribute to environmental and social sustainability. It aligns with both the EU Taxonomy and the United Nations Sustainable Development Goals (SDGs). According to SEB, “the interest in index-linked funds is increasing at the same time as there is a demand for so-called Article 9 funds, with sustainable investments as a goal,” stated Elisabet Jamal Bergström, Head of Sustainability at SEB Investment Management.
Strategic and Systematic Investment Approach
The SEB Global Sustainable Companies Fund uses the MSCI World Net Return Index as a benchmark, strategically selecting around 500 companies from 1,500 in 20 developed countries. This approach ensures that the fund remains globally diversified while adhering to a systematic, rule-driven model to minimize deviation from the benchmark. As Natasha Kubát, Portfolio Manager at SEB, noted, “We are proud of this fund, which has sustainability as its goal while at the same time providing good global diversification.”
Reducing Carbon Footprint
One of the fund’s significant achievements is its lower carbon intensity, approximately 50% less than its benchmark index. This reduction highlights SEB’s commitment to minimizing greenhouse gas emissions. “We can take into account many sustainability parameters such as greenhouse gas emissions, consideration of the UN’s goals for sustainable development and compatibility with the environmental goals within the EU’s taxonomy at the same time,” Kubát added.
Related Article: Bank of America Makes First-of-Its-Kind $205M Tax Credit Deal for Carbon Capture with Harvestone
A Cost-Effective, Sustainable Solution
SEB aims to offer a cost-effective investment option that does not compromise on sustainability or returns. Martin Rydell, Head of Index & Solutions at SEB, explained, “We have developed a cost-effective fund that provides access to our entire sustainability model, which will simultaneously generate a return and risk profile that is in line with the benchmark.”
With the SEB Global Sustainable Companies Fund, SEB is not just investing in companies; it is investing in the planet’s future, providing a vehicle for investors to support sustainability and make a positive impact.