SEB IM ditches fossil fuels for all funds

On the 02/10/21 at 7:42AM


Tuba Raqshan

SEB Investment Management strengthened its sustainable policy, implementing uniform exclusion criteria for all in-house managed funds and exclude fossil fuels across all portfolios.
Javiera Ragnartz, head of SEB IM

SEB IM tightened its requirements regarding the exclusion of fossil fuels, which were already introduced for its index-tracking funds during 2020. The Nordic asset manager’s management board decided upon an updated sustainable policy in December 2020, which will be implemented during the first quarter of 2021.

A new in-house model will be used to strengthen the analysis of all companies in the investment portfolio, focussing on material sustainability risks and opportunities. The fund company’s total capital should be invested carbon neutral by 2040 and that investments in companies that contribute to solutions or enable transition shall increase.

Under the new sustainability policy, SEB IM will introduce exclusion rules that were previously used to sustainable and ethical funds – such as fossil fuels, tobacco and commercial gaming operations – to all funds. The policy also broadens the exclusion criteria of fossil fuels to include extraction and production of fossil fuels as well as power generation and distribution connected to fossil fuels, which would be applicable across all funds.

This policy upgrade will result in changes in fund names as the asset manager will drop terms such as “sustainable” or “sustainability” since all its funds are sustainable. “When we now raise our ambitions and they will become the same for all funds, there is no longer a need to distinguish between sustainable funds and other funds,” said Javiera Ragnartz, head of SEB IM.