@soderberg_partners
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Climate Love
Climate Review Score ranking:
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The impressive ATR (Action Taken Report) of Soderberg & Partners shows that money is surely moving in right direction many cases. The company is providing much needed support to the green business, nature based solutions and other agencies which are working in field of sustainability and Climate Change. Seventeen Sustainable Development Goals (SDGs) has been set by United Nations and these are known as UNSDGs. UN has also provided a deadline to meet UNSDGs by 2030. Worldwide performance of attaining UNSDGs is still far behind from being satisfactory. In this context the Sustainability report 2023, which shows the SDGs of the company, performance indicators and level of target achieved, stands out (link is available). The UNSDG 12 and UNSDG 13 has been described in first and second place in the report which gives an idea about the priorities of this agency. The objective reporting about 9 UNSDGs ( 12,13,4,10,5,8, 11, 7) unambiguously defines the scope chosen by this agency for work an investment. Under UNSDG 12 upheld responsible consumption and production. This 2023 report suggests that in course of finding out and facilitating UNSDG 12, 3745 financial and insurance products have been analyzed. Under UNSDG 13, climate dialogues are being facilitated. The work is done by 3737 employees in 7 countries. Out of 3737 employees 58% is male employee and 42% is female employee. It is hoped that 50:50 ratio of men and women workers (as are now in UK and Netherland) shall also be strived in other countries. The Tables on Carbon footprint provide the scope of reducing GHG emission more. The report also has a brief ESG (Environmental. Social and Governmental factors) analysis. Overall the ATR is good one and can be set as an example to be followed by other companies. https://online.flippingbook.com/view/198226373/10-11/#zoom=true
Sustainability Report 2023
Söderberg & Partners Strategirapport är avsedd att ge en summering av vår marknadssyn med utgångspunkt i makroekonomiska förutsättningar, sentiment hos investerare och värderingar på värdepappersmarknaderna. Syftet är att belysa aktuella risker, dra lärdomar av historiska samband och av tidigare studier samt ge en tydligare inblick i våra rekommendationer.
https://online.flippingbook.com/view/198226373/10-11/#zoom=true
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The launch of a new environmental portfolio, 81 engagement dialogues, and a top ranking in a prestigious sustainability survey. Those are some highlights mentioned in the Söderberg & Partners Sustainability Report of 2023. Söderberg & Partners’ ‘Investment Management’ division launched a new environmental portfolio in 2023. Through global equity funds, it offers clients investment opportunities in green technology, nature-based solutions, clean energy, and other sectors that aim to address environmental challenges. The funds focus on six environmental themes that connect to the environmental objectives prioritized by the EU in the Taxonomy Regulation, which will have a huge effect on corporate sustainability reporting. They have 68 funds with a particular sustainability focus available to their clients, which is an increase of 9 funds since the beginning of 2022. They have reached their target that 100% of equity and fixed income funds within discretionary mandates offered by Söderberg & Partners Wealth Management AB have attained at least a yellow or green sustainability rating. More funds have also been subject to an in-depth sustainability analysis, which builds on interviews or other types of direct contact with fund managers. As a service company within the financial sector, it is through the company’s financial advisory, asset management, insurance intermediary, and HR-related services that it can have the biggest climate impact. The company is constantly increasing its efforts to reduce its carbon footprint, for instance, a travel policy has been developed, where air travel should always be the last option, and employees are to travel by train if the journey takes 4 hours or less by train. Between 2022 and 2023, it managed to reduce the number of short flights (< 500 km) in Sweden by an average of 22 percent, compared to the last three-year period. The company does put in a lot of effort towards sustainability, both for itself and its clients. In 2023, Söderberg & Partners Wealth Management AB was awarded first place in the “Sustainable Investments” category in Kantar Sifo Prospera's Private Banking survey. This prestigious recognition underscores the clients’ perception of the company as an industry leader in sustainability. Here is a list of other sustainability highlights from 2023. They have: - Covered about 3,745 financial and insurance products in the sustainability analysis. - Launched the new engagement theme carbon emissions in the fund Aktiv Påverkan. Aktiv Påverkan is a fund strategy that leverages the power of an active ownership profile to achieve long-term sustainability goals that are selected by their clients. - Conducted a sustainability analysis of non-life insurance companies in Finland this year, the first company in Finland to ever do so. - Partnered with the Stiftelsen Läxhjälpen Foundation to support the education of over 350 children in over 20 schools across Sweden. - Raised 96,289 euros for the company Solvatten during Sustainability Week, resulting in 882 Solvatten units that purify water for the people of East Africa who were in dire need of clean water. - Participated in 81 engagement dialogues with some of their most important partners, which include 33 held by the Sustainability Team. Read the full Sustainability Report 2023 here, and post any improvements or suggestions in the comments field that the company can take going forward.
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I like this quite a lot. Söderberg & Partners' sustainability strides are commendable, with a focus on green investments, reduced carbon footprint, and impactful initiatives. To elevate their efforts, I'd love to see if they could enhance transparency and set more ambitious targets.
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Great to read about your progress, keep up your good work!
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Wonderful progress.Keep it up.
The Traffic Light Report 2023 compiles Söderberg & Partners’ analyses from the past year and highlights the financial actors that have excelled from both financial and sustainability perspectives. The report announces the most sustainable actors of the year in the fields of investments and non-life insurance; Storebrand and Svedea, respectively. The options available in the savings market continue to increase, despite global insecurities and tensions. This makes it complex to make qualified investment decisions based on financial performance and sustainability considerations. In this convoluted world of funds and insurances, people need someone to guide them and showcase which financial products best meet their expectations. Throughout 2023, Söderberg & Partners have released multiple reports analyzing the sustainability performance of Swedish financial actors, covering 3689 funds, 25 pension companies, 13 unit-linked insurance companies, and 43 non-life insurance companies. Each sustainability analysis uses a relative three-grade scoring system where the companies that are ahead get a green light, while those who are falling behind get a yellow or red light. In the Traffic Light Report, the companies’ ratings and achievements over the past year are compared to identify the best company within each category. Two companies received the title of “Most Sustainable Actor”, highlighting their contributions to the development of a more sustainable finance sector in Sweden: Storebrand: Most Sustainable Actor in Sustainable Investments 2023 For their commendable action within sustainable investments, Storebrand received the title of Most Sustainable Actor in Sustainable Investments 2023 in the report. As a company that has contributed to the development of sustainable investments for a long time, Storebrand has advocated for more focus on multiple issues that are imperative for sustainable development, including climate, biodiversity, and equitable societies. As proof of their high ambitions, Storebrand has a net zero target both on the group level and in their investment portfolios, and their Swedish subsidiary SPP is the only pension company that has had a green rating in every yearly analysis since its inception 10 years ago. Svedea: Most Sustainable Actor in Non-life Insurance 2023 Netting the title of Most Sustainable Actor in Non-life Insurance 2023, Svedea has worked proactively with sustainability for multiple years, and shown continuous improvement. With a focus on circularity in claims management as well as damage prevention, they are driven by an ambitious climate target and initiatives that engage their employees. Their ambitions also show in their premium investments, which are controlled by clear guidelines in multiple asset classes. Putting the spotlight on these two companies can not only help individuals make better-informed decisions on where to put their money, but also share knowledge and best practices between finance companies and encourage better sustainability performance across the whole sector. As the 2024 Traffic Light Report comes out, many companies have the potential to go from a red to a yellow or green rating, which is a win for both the company and the planet. Read the full Traffic Light Report (in Swedish) on our website: https://www.soderbergpartners.se/om-oss/analys/trafikljusrapporten/
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well deserved, congratulations
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Congratulations to the worthy recipients!
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Congratulations to Storebrand and Svedea!
Non-life insurance companies have both financial and environmental incentives to improve their sustainability performance. To increase awareness of which companies are best at acting according to those incentives, Söderberg & Partners’ sustainability analysis of non-life insurance companies covers how the companies integrate sustainability considerations in their work with insurance products, investments of premiums, and sharing sustainability knowledge both internally and externally. In the analysis, the companies that do best are highlighted with a green score, and those who fall behind get a red score. Non-life insurance companies have a pivotal position in the sustainable transition. They can help customers mitigate risks and damages from climate change, while proactively reducing emissions by investing insurance premiums in sustainable activities. By taking climate risks into account, sharing information on damage prevention methods, and introducing circular processes into claims handling, property insurance companies can play an important role in the transition to a more sustainable society. Introducing stricter sustainability policies can benefit non-life insurance firms financially if the many sustainability-linked risks are properly mitigated. Aside from the direct physical risks of assets being damaged because of changes in the climate, there are also risks associated with the insecurity of the financial value of assets. A concrete example of this is seaside property which might be subject to water damage due to heightened ocean levels. Finally, reputational and responsibility risks can also lead a company to lose a competitive advantage if it appears unable to reach a higher sustainability standard. Addressing all these risks can lead to higher sustainability performance and a better financial outlook. To evaluate which Swedish non-life insurance companies have the best strategies for accomplishing this, Söderberg & Partners conducts an annual survey and analysis. The analysis focuses on the companies’ sustainability integration within: - Claims management - Damage prevention - Procurement of suppliers - Customer evaluation and engagement - Investments of premiums Awareness-building within the industry and amongst employees of the potential impacts non-life insurance companies can have on the environment and sustainable development Each category of the analysis is accompanied by a relative grade of green, yellow, and red scores, where the companies with the best performance get a green score while those with more work to do get a red score. In this year’s analysis, 2 out of 21 companies got a green score in every applicable category: Länsförsäkringar and Svedea. Both companies put a lot of effort into reducing material use from insurance claims, follow up on sustainability criteria in their investments, and take active roles in sharing best practices and experiences with other companies in their sector. Read the full analysis to find out more about how sustainable your property insurance provider is (in Swedish): https://online.flippingbook.com/view/1021693929/2/
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Let's hope this encourages other insurers to up their game. A sustainable insurance industry is essential for a sustainable future. Here's to a future where insurance companies are protecting both our wallets and the planet!
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This achievement highlights their commitment to environmental, social, and governance principles, setting a positive example for the industry. Their success serves as a beacon for other firms to prioritize sustainability in their operations and decision-making processes.
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This scale will also help people know which organizations take sustainability seriously and where to invest in. Companies with good sustainability scores will be better suited to the market as the population joins hands in the green movement effectively hurting stocks of companies who do not try getting themselves sustainable.
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In this year’s analysis of pension companies and unit-linked insurance in Sweden, most pension companies retain the same grade as they got last year. While most pension companies have set net zero goals and improved their sustainability work, practical action is still needed through active ownership and proactive initiatives. In the reports “Sustainable pension companies” and “Sustainable unit-linked insurances”, Söderberg & Partners bring light to which companies do this well and which ones don’t perform as well. The latest analyses of sustainable pension and unit-linked insurance companies in Sweden have been released. Every year, Söderberg & Partners analyze Sweden’s largest actors in pensions and unit-linked insurances to see which companies are best at promoting green investments in their portfolios. This year, there weren’t a lot of changes in which companies got the green light or not, but it is clear that most pension companies are investing in bigger sustainability teams and improving their risk analyses from a sustainability perspective. Since last year, many companies have also implemented a sustainability day or week for the company to educate co-workers on sustainability issues. These changes show that sustainability is becoming increasingly important for investors, and as EU regulations on sustainable investments are being implemented we expect this trend to continue. Pensions: Increased awareness, but still more to do Despite updating our analysis model for this year, no companies changed their overall grade in this year’s report. However, many pension companies have advanced their positions, expanded their sustainability teams, and set net zero goals in line with the Paris Agreement. However, proactive action is needed to reach the goals in time. In this report, pension companies were evaluated based on their processes for sustainable investments, active ownership as well as ambitions and value creation. 💚 Companies with a green light in this year’s report: Länsförsäkringar, Nordea, Skandia, SPP ⚠ Companies with a red light in this year’s report: Alecta, SEB Gamla Read the full report here. Unit-linked insurances: Transparency and proactive ownership are the keys to success Two companies changed their overall grade compared to last year’s report. SEB improved their grade from red to yellow by increasing the amount of funds that performed well in Söderberg & Partners’ sustainability analysis. They also improved their transparency in describing their sustainability processes. Meanwhile, Futur was demoted from a green to a yellow grade because of their lack of proactive activity towards their fund managers, as well as a lack of collaboration with other actors in the sector. In this report, companies were evaluated based on the sustainability of selected funds, active ownership, communication and transparency, and supply. 💚 Companies with a green light in this year’s report: Folksam, Skandia, SPP ⚠ Companies with a red light in this year’s report: AMF, Nordea Read the full report here. Why is this important? When choosing which company to rely on for your pension, you can use your financial power to support more sustainable asset management. Companies with higher grades in the report have developed processes for sustainability consideration and evaluation and work proactively to make practical changes to the funds or holdings they invest in, with good conditions to make these changes happen. Companies with these qualities direct funds to benefit the sustainable transition, accelerating climate solutions and influencing companies to take more sustainable actions. Make sure to stay up to date with the performance of your pension and insurance companies in our analyses if you want your money to help reach our climate goals. If you live in Sweden, you can learn more about which companies are the best at climate action by reading our full reports. Sustainable pension companies (Hållbara pensionsbolag) Sustainable unit-linked insurances (Hållbara fondförsäkringar)
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This is positive news, though, practical actions such as active ownership and proactive measures are still necessary to truly advance sustainability efforts in the pension and insurance sector.
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In-depth analyses like this are super helpful for those who are not as knowledgeable about the finance market, like me. Happy to have my pension savings in SPP!
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The analysis of sustainable pension companies and unit-linked insurances in Sweden sheds light on the progress made in promoting green investments and sustainability practices within the financial sector. While many companies have made strides in expanding sustainability teams and setting net zero goals, there is still room for improvement in terms of proactive action and transparency. It's encouraging to see that sustainability is increasingly prioritized by investors, and the implementation of EU regulations on sustainable investments is expected to further drive this trend. Companies like Länsförsäkringar, Nordea, Skandia, and SPP are setting positive examples with their green initiatives, while others still have work to do in terms of active ownership and collaboration.
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Historic returns on investments are rarely a good predictor of future returns. This is especially true in the case of environmental investments where the innovations needed are both new and on an unprecedented scale. At Söderberg & Partners Wealth Management in Sweden (“S&P WM AB”), we have designed a new portfolio that seeks to contribute to improvements within several environmental themes while producing sound returns on investments. Investments in these solutions can help to create an economy that restores the planet instead of breaking it down. The whistle has been blown, marking that we are at half-time. We are severely behind. If we win the game, our children and grandchildren could experience the same quality of life as many in the Western world today. If we lose, we leave them in the limbo of worry, at the mercy of extreme heat mixed with other natural disasters, and continued conflict caused by lack of resources and global inequity. We are starting the second half and there are whispers of a strategy to help us win. One key component of this strategy is environmental investments – let us tell you more about how they work. Off track at half-time 2023 marks the halfway point between the 2016 Paris Agreement and the year 2030, when all 17 Sustainable Development Goals (SDGs) are supposed to be fulfilled. Despite this, a newly published UN report warns that “many of the SDGs are moderately to severely off track”. Earlier this year, the United Nations Secretary General, Antonio Guterres, expressed his worry: "Unless we act now, the 2030 Agenda will become an epitaph for a world that might have been." The report, named Progress towards the Sustainable Development Goals: Towards a Rescue Plan for People and Planet, contains recommendations for actions that can be taken to change the trajectory and speed up the transition needed to reach the SDGs. Continued and increasing climate finance is one of these actions. European Central Bank: The way forward is clear The more developed countries of the world have committed to mobilizing $100 billion in climate financing every year between 2020 and 2025. To make this happen, the European Union wants to include the financial market in the game to steer investments towards green projects. “The path forward is clear: we must forge ahead with a global transition to ensure our economies are future-proof,” said Christine Lagarde, President of the European Central Bank. To support this ambition, a wave of sustainability frameworks meant to accelerate the contribution from the finance sector have either been launched or are on their way. For example, the European Union has introduced a Taxonomy to give investors more information on how different companies contribute to the environmental goals most important to the European Union. The taxonomy features six goals that investments should contribute towards to be considered “green”. Thematic diversification creates a more stable portfolio To strengthen our ecological balance sheet, we have created a portfolio that supports these six environmental themes. To begin with, the portfolio consists of seven actively managed equity funds which we have analyzed from both a sustainability and a financial perspective and where we combine thematic funds with broader global funds. The idea is to use strategies that complement each other so as to create diversification within the portfolio. Two global funds that are broader in scope are included in the portfolio to reduce the risk that is typically associated with thematic investments. The more broadly focused funds do for example include larger and more established companies in the portfolio while maintaining a strong focus on environmentally sustainable investments. The funds in the portfolio also differ in terms of their geographical and sector exposures as well as their investment styles. This diversification creates a robust portfolio. The result is an actively managed portfolio that stands out from the global stock index and includes investment themes relevant in the long term from an investment and environmental perspective. Learn more about the six environmental goals below and read more about the strategy in our strategy report (in Swedish): https://online.flippingbook.com/view/71031788/26/ Six themes for environmentally sound investing Climate change mitigation. As a growing population’s quality of life is improved, the energy usage of the world continues to increase. We need investments in renewable energy, energy storage, smart grids, and other infrastructure, as well as semiconductors and other energy-efficient technologies. Climate change adaptation. Damages from natural disasters have increased by 5% annually over the past 50 years. Creating a resilient society requires innovations in urban planning, property construction, and energy system design. Protection and restoration of biodiversity and ecosystems. Investments in climate solutions can’t solve everything. Our land and sea ecosystems combined absorb over 50 percent of humanity’s carbon footprint, and approximately half of global GDP depends on biodiversity. Investments in nature-based solutions that protect and restore our biodiversity and our ecosystems have recently garnered more attention and are sometimes referred to as the “new black” in sustainable finance. Sustainable use of water and marine resources. Water, oceans, and marine resources are the foundation of what is referred to as the blue economy. Our health, food supply, and millions of jobs across the world depend on healthy oceans. Furthermore, freshwater is a limited resource that can run out and leave us without access to clean water. Investments in a circular water system allow us to continue to make use of the Earth’s resources for generations to come. Pollution prevention and control. To prevent our production and waste management processes from polluting the environment, investments are needed in innovative production methods and infrastructure that enable the transition to a circular economy built on reparation, reuse, and recycling. Transition to a circular economy. Environmental challenges are connected. Loss of biodiversity is driven by climate change, land use, pollution, and exploitation of nature. Reduced resource use is therefore just as important as climate solutions. This can take the form of circular business models that prolong the lifetime of products, make use of recycled materials, or manage water, emissions, and waste.
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Positive environmental change begins with individuals urgency. I believe change agents can be achieved in our neighborhoods. The idea of small gardens in our homes can bring the nesesary impact if done in a collaborative stratergy within communities.
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With huge investments in climate it is only a matter of time before they turn to profit while also benefitting the planet. Can't wait
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It will be interesting to observe the impact and effectiveness of such investments in fostering positive environmental change.
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By working with the Swedish Environmental Research Institute (“IVL”) and investing in two Swedish property companies, the latest project within the Söderberg & Partners Asset Managements’ (“S&P AM”) fund strategy Aktiv Påverkan (“Active Engagement”) set the foundation for more ambitious climate action and more accurate climate reporting. The key focus was to provide new tools and incentives for reducing emissions in the construction and civil engineering sectors. The investors voted for the second theme for S&P AMs’ fund strategy Active Engagement to be “Reduced carbon dioxide emissions”. The project, running from 2020 to 2022, has focused on reducing carbon emissions in the construction and civil engineering sector by investing in two Swedish property companies that own, develop and manage properties – Stendörren Fastigheter AB and Diös Fastigheter AB. IVL was the collaborative partner for this project, and from the start, it was clear that both companies were receptive to the help and had a lot of potential for improvement. Accurate climate reporting leads to concrete action plans One of the main takeaways for the companies during the project was methods for more accurate climate calculations and reporting. IVL gave both Stendörren and Diös more thorough tools for carbon emissions measurement that allow them to report emissions according to the GHG Protocol, including the more elusive Scope 3 emissions (emissions caused by other actors connected to the company’s operations, like suppliers and transport providers). These calculations provide useful data for setting up more ambitious, science-based climate targets, and action plans to reach them. Diös showed their ambition by setting a target of halving their emissions by 2030 and reaching net zero emissions by 2045. The new tools for climate change adaptation also helped prepare the companies for stricter environmental legislation, something that is crucial for all companies in the sector. According to Stendörren, they were well prepared for new regulations that mandated them to hand in a climate declaration to Boverket – the Swedish National Board of Housing, Building and Planning – at the start of 2022. The process was much faster than it would have been otherwise. Engaged investors inspire action It was also clear that the project inspired more ambitious climate action overall in both companies. When companies are encouraged, not only from the side of customers, or in this case tenants, but also from investors and financial institutions, it gives executives incentives to adopt more ambitious action plans and be more active in their climate agenda. This effect was amplified when both companies were given a better picture of the climate impact they really have, making the urgency to act on the climate crisis clear. This is only one of the projects S&P AM is conducting within the scope of the Active Engagement fund strategy. The next focus for this strategy is improving the circularity of the companies S&P AM invested in within the third theme. If you want to read the full report for the project on reducing emissions in the construction and civil engineering sector, you can find it in Swedish on Söderberg & Partners website: https://www.soderbergpartners.se/insikt/artiklar/hallbarhet/vad-blev-resultatet-av-aktiv-paverkans-andra-paverkningstema/ This is a marketing communication, please refer to the prospectus of Söderberg & Partners Funds and to the KID of the relevant product before making any final investment decisions. The prospectus and information on investor rights are available in English, while the KID is available in both English and Swedish. All documents can be found on the www.soderbergpartners.lu/documents. Marketing arrangements made for the products in Luxembourg and Sweden may be terminated in the future.
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Amazing innovation
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Reducing carbon emissions in construction is critical to reaching our global net zero aim and tackling the climate crisis.
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I think once we find a way to curb emissions in the production of materials used in construction we'll have made huge inroads in this direction
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Every year, Söderberg & Partners arranges a Sustainability Week for all of our employees in Sweden, Norway, Denmark, Finland, and The Netherlands with the purpose of educating all of them about sustainability and planting the seeds that can grow into more sustainable habits in their work and everyday lives. During the 2023 Sustainability Week, taking place between September 4th and September 8th, workshops and lectures were arranged alongside a competition where employees were challenged to complete as many sustainability challenges as possible. For every challenge completed, we donate an amount of money to a cause that supports a sustainable transition in the world. So how did it go? After all was said and done, our employees completed enough challenges for a donation of €96,289! This year, the donation went to the social enterprise Solvatten, which works with governments, local organizations, and companies to provide unique jerry cans that heat and treat water through solar power. Having initiated 45 projects since 2007 and reaching over 550,000 people in over 20 countries, Solvatten is a worthy recipient of our donation. This money will fund another 882 Solvatten jerry cans that will support as many families with clean water over the coming 7 years. The Sustainability Week is a valuable activity that utilizes employee engagement for more action in sustainability, and we hope more companies will follow suit! Which company would you like to see implement a Sustainability Week next?
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Climate finance is what we need!
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Such money should be helpful in creating awareness and promoting climate agenda
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This is commendable seeing them demonstrating their commitment to promoting sustainable practices and making positive impact.
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The European Union is asking companies to disclose the negative impacts that their investments may have on the environment. This has piqued the interest in the relationship between the financial performance of assets and certain sustainability factors. These factors include carbon emissions, water conservation, biodiversity, energy efficiency, and waste management. To address these questions, we have created a white paper to answer the question: Which sustainability factors pay? Under the European Union Sustainable Finance Disclosure Regulation (SFDR), companies are mandated to report the effect their investment decisions or advice may have on specific Principal Adverse Impacts (PAIs). These PAIs include sustainability factors, including carbon emissions, water conservation, biodiversity, energy efficiency, and waste management. This new regulation has raised the question among investors: Can we take these factors into account without sacrificing too much in terms of financial performance? The most recent research points clearly in one direction – not only is there no trade-off between sustainability and financial performance, but investing sustainably can actually increase financial sustainability. Carbon emissions: A clearly profitable sustainability factor The relationship between carbon emissions and financial performance has been thoroughly researched over the past years. A meta-analysis by the New York University looked at 39 papers and found that 59% of the studies show a positive relationship, while only 10% show a negative one. Some of these papers came to the conclusion that aggressive decarbonization strategies correlate to better risk-adjusted returns and that the conscious investment in carbon-efficient firms and exclusion of carbon-inefficient firms can result in a direct increase in returns. Some researchers try to explain this trend through the hypothesis that a proactive climate change strategy that is also financially viable makes a company look better to stakeholders and asset managers, paving the way for economic success. Other sustainability factors can also pay Research on the other sustainability factors covered by the white paper, while less extensive, all point toward a positive relationship between a better sustainability score and higher returns. Investing in companies that work proactively with water conservation, biodiversity, energy efficiency, and/or waste management is a way to not only contribute to a more sustainable future but also to future-proof investments for higher long-term returns. Investments with a high sustainability score usually contribute to better risk management and more innovation while being more resilient in times of crisis, as was shown during the pandemic. As it becomes mandatory to disclose the potential sustainability implications of investments, asset managers need to remember that there is no trade-off between a sustainable investment and a financially viable one – in fact, the opposite tends to be true. Read the full white paper to learn more, and also see our findings on social sustainability factors such as diversity and human rights: https://online.flippingbook.com/view/757279553/
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Super interesting! More investors need to choose the planet
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As part of the 2022 annual report, Söderberg & Partners reported some significant climate actions that the company took in 2022. By broadening the scope of carbon accounting in line with the GHG Protocol, we can more accurately report our greenhouse gas emissions and identify where we can make the most impact by reducing emissions. The report also contains work we have done to engage employees in living a more sustainable lifestyle and to reduce our transport-related emissions. In our 2022 Sustainability Report, included in our recently released annual report, we highlighted our expanded method to account for our carbon footprint. Following the GHG Protocol, we now calculate and report our carbon emissions within all 3 scopes, meaning that we include emissions that are connected to our own operations, the energy we use, and any activities that are connected to our work such as transport, waste, and purchased goods or services. By accounting for our carbon footprint in this way, we can identify where we need to reduce our emissions the most, as well as be more accurate in buying carbon removal to compensate for residual emissions. One action that we have already taken is updating our travel guidelines to encourage our employees to travel by train or sustainably fuelled cars. We have updated our definitions of what is an environmentally friendly car to be stricter and more appropriate for reducing emissions from car travel, and we have also updated our travel guidelines to state that air travel should always be the last option, and only if it would take more than 4 hours to travel by train. By continuously calculating and reporting our emissions from all aspects of our operations, we will be able to continue to make better decisions and take better actions to reduce our own carbon footprint. This work is in parallel with our continued work with helping our customers make more sustainable choices in their investments and fund management. Highlights from our 2022 sustainability report: - The Sustainability Team completed 25 in-depth fund analyses and continues to impact and develop sustainability in the financial sector. - In 2022, we made it easier for our employees to reduce their IT equipment waste and increase the circular economy through the company 3StepIT. - 97 tonnes of CO2 was saved by all our employees during the Sustainability Week. You can read the full report here: https://online.flippingbook.com/view/956508675/
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Climate accountability if I'd call it so is something we need to see
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It's very good! This should be mandatory for all companies, and with the help of the EU, it soon will be for larger companies. It's great to see that Söderberg & Partners are already implementing it! They are leading the way!
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It's great to see companies report on what they do for the climate, we can't just rely on promises and plans
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To contribute to the sustainable transition of Swedish companies, Lingyi Lu, Head of Sustainability at Söderberg & Partners, was recently appointed as a board member of UN Global Compact Sweden, the Swedish branch of the largest sustainability initiative in the world. Together with nine other board members, including representatives from Ericsson, Scania, and Save the Children Sweden, she will support Swedish corporate members of the initiative and improve their sustainability efforts. UN Global Compact is the world’s largest sustainability initiative. Launched in 2000, it’s a global network of companies that work together to create a more sustainable future. At the core of the initiative are 10 principles that each company needs to abide by, connected to the 17 sustainability goals by which the UN Global Compact initiative is guided. Each year, each member company must communicate its progress on the principles publicly to ensure that they are doing what they need to contribute to the sustainable transition. Among the principles, it is stated that member companies must promote caution in environmental risks, take initiatives to improve climate awareness, and encourage the development of environmentally friendly technologies. As a new board member of UN Global Compact Sweden, Söderberg & Partners’ Head of Sustainability, Lingyi Lu, will be a part of developing this work and improving the sustainability efforts of the whole business sector in Sweden.
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Dear Söderberg & Partners Your climate love has received over 50 agrees! We have reached out to United Nations Global Compact Sweden by email and requested a response. I will keep you updated on any progress! To reach more people and increase the chance of a response, click the Share button above to share the review on your social accounts. For every new member that joins We Don't Have Time from your network, we will plant a tree and attribute it to you! /Adam, We Don't Have Time
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Congratulations to the UN for creating a great plan to aid in creating a sustainable future in Sweden.
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This is great, good job Söderberg & Partners!
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Protecting biodiversity in the Scandinavian Mountains is partially the responsibility of those who exploit and construct in those areas. For this reason, Söderberg & Partners Asset Management has invested in SkiStar through the fund strategy Aktiv Påverkan (“Active Engagement”), enabling a project to improve the biodiversity in SkiStar’s locations. The Scandinavian Mountains hold some very fragile ecosystems with a lot of biodiversity that are to some extent untouched, but there are some activities that affect them more than others. One is a favorite of the Scandinavian population: skiing. Construction at ski resorts and blasting mountains to allow for new ski slopes can cause irreparable damage to the surrounding environment. Mountain tourism companies have a significant role to play in making sure that the natural environment, which gives the resorts their charm, is protected when building new after-ski lodges or ski slopes. Our fund strategy Active Engagement makes targeted investments in companies that can improve their sustainability work in specific focus areas. The focus areas are decided through votes from the investors in the funds, and the latest focus area is biodiversity. Within this focus area, we invested in SkiStar, Scandinavia’s leading actor in mountain tourism with ski resorts in both Sweden and Norway. This investment has enabled a project to establish a working method for SkiStar’s exploitation projects which takes biodiversity into account. This is to be exemplified by measures being implemented at one of SkiStar’s destinations, namely Vemdalen in Sweden, where SkiStar has bought 400 ha of land encompassing both bare mountain and mountainous forest. The project is also investigating the possibility of setting targets within SkiStar for increased biodiversity by 2030 using the Science Based Targets for Nature (SBTN) framework. To help us with this investment, we have brought in the environmental consultant firm Ecogain as an external expert. “We see a big and growing interest among our investors to protect the biodiversity we have in Sweden, and we believe that this project together with SkiStar, which shares this view, is the starting point for important engagement work,” says Patrik Ohlsson, Head of Sustainability at Söderberg & Partners Asset Management. This is a marketing communication, please refer to the prospectus of Söderberg & Partners Funds and to the KID of the relevant product before making any final investment decisions. The prospectus and information on investor rights are available in English, while the KID is available in both English and Swedish. All documents can be found on the www.soderbergpartners.lu/documents. Marketing arrangements made for the products in Luxembourg and Sweden may be terminated in the future.
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Its really interesting once a culprit decides to act responsibly, the first step is to admit your negative impact then trying to address.
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Interesting, but I am wondering how you will measure the positive impact on biodiversity. Doesn't investing in SkiStar mean more money for the ones building ski resorts (and therefore destroying biodiversity)?
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Great to see your active engagement investment in action. Do you have a dialogue directly with Skistar about your investor's focus or is it more like you have identified Skistat as an enabler that you invest in because of your strategy or exactly how does your method work? Would love to know more. We need investors that care! Thank you 💚
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Sustainability is a central consideration for non-life insurance companies, as there are many risks and opportunities associated with the underwriting process. There are many different ways to integrate sustainability, so this year’s edition of the Söderberg & Partners’ “Sustainable non-life insurances” report scores companies on multiple criteria. The results show which companies you should consider if you want your non-life insurance to be more sustainability-focused. Every year, Söderberg & Partners evaluates Sweden’s 19 biggest providers of non-life insurance (insurance for property and products, like vehicles or companies) to determine how well they take sustainability into consideration in their underwriting processes. The companies are then given a green, yellow or red score for each perspective in the analysis, where a green score is the best and a red score is the worst. The three perspectives of the analysis are: Sustainability in non-life insurance In this perspective, the companies are evaluated based on their sustainability consideration within their insurance, especially in terms of damage control, risk analysis, procurement, and how they work to prevent damages. This perspective is divided into three categories: - Business insurance: In this category, the analysis focuses on property, since the companies have the biggest potential impact in that area. For example, companies can reduce their material use through the reuse of materials, the management of damaged materials, and the prevention of damage in the first place. - Motor insurance: This category covers how insurance companies can make a difference through repairs, reuse, and recycling of vehicles. - Transport and cargo insurance: This category covers goods insurance and transport liability, where there is an opportunity for insurance companies to integrate sustainability into their damage control and prevent damages. Management of invested premiums Insurance companies not only provide insurance, but they also manage a lot of capital. This perspective analyzes how the companies integrate sustainability into the investment processes of their managed premiums. The analysis also looks at how the companies try to improve the level of sustainability within their holdings, through dialogue with companies or external managers. Awareness and collaboration We also want to highlight companies engaging to improve the sustainability work of their sector. In this category, we evaluate the companies' active participation in collaborations within the insurance sector, as well as efforts to educate employees on sustainability, as employee engagement is a crucial part of implementing the company’s sustainability strategy. See the full list of companies that received a green score in each category below, and read the full report (in Swedish) here: https://online.flippingbook.com/view/259644376/ These companies received a green score in each category: Sustainability in non-life insurnace: Business insurance @Folksam, Gjensidige, @If_Skadeforsakring and @Svedea Sustainability in non-life insurnace: Motor insurance Gjensidige and @If_Skadeforsakring Sustainability in non-life insurnace: Transport and cargo insurance @If_Skadeforsakring and @Lansforsakringar Management of invested premiums @Dina_Forsakringar, @Folksam, @HDI_Global_SE, @Lansforsakringar, @Svedea Awareness and collaboration @Folksam, @If_Skadeforsakring, @Zurich_Insurance
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Thank you for sharing this important data with our community, this is clearly a great way to decrease one's climate impact
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Skandia uses a thorough sustainability analysis and regular screenings to measure the level of sustainability in their fund selection. The results of this analysis are then used to improve the average sustainability score of their supply and influencing fund managers to improve their sustainability work, and they are also working to make their whole sector more sustainable. For this, Skandia has received a green score in this year’s “Sustainable unit-linked insurances” report. Every year, Söderberg & Partners evaluate Sweden’s 13 biggest providers of unit-linked insurance — insurance that allows long-time investment of your occupational pension, with a range of different funds to choose from — to determine how well they integrate sustainability into their offerings. The companies are given a green, yellow, red, or grey score, where green is the best and red is the worst. A grey score means that the company’s model differs too much from the other companies in the analysis, meaning that it can’t be evaluated in all four criteria and therefore get a grey total score. This year, we had 4 companies reach a green score when considering all criteria (up from 3 in 2022). Our analysis to determine the top companies offering unit-linked insurance looks at four areas: Sustainability in the selection of funds, engagement work, communication and transparency, and supply of funds. Skandia uses a sustainability analysis based on 16 factors to give each fund an individual score. This analysis is used to ensure that all funds in their supply reach certain minimum demands. They also have the ambition that all new funds included in the supply have a higher score than the average of their fund category. Their list of funds is transparent and provides customers with a lot of information on the level of sustainability of each fund. Skandia also aims to influence other actors to act more on sustainability. When a company is flagged in their screening, they expect to see a will to change. They also communicate with fund managers about how their funds are doing and what their strengths and weaknesses are. To influence fund managers further, they compare themselves to their competition to give fund managers more incentive to improve. On their website, Skandia offers a lot of information on how they are working with sustainability within the company and their whole sector. Read the full report (in Swedish): https://online.flippingbook.com/view/418617392/
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Great job Skandia!
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wonderful
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Congrats to @Skandia this is impressive
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The Swedish insurance company Futur has improved its sustainability score and found itself as the insurance company out of all analyzed companies that has the highest ratio of funds that get a green score in our sustainability analysis. By continuously following up with their fund managers to keep the sustainability level high, and clearly communicating the sustainability level of each fund to help their customers make better choices, Futur is one of the top insurance companies in our 2023 report “Sustainable unit-linked insurances”. Every year, Söderberg & Partners evaluate Sweden’s 13 biggest providers of unit-linked insurance — insurance that allows long-time investment of your occupational pension, with a range of different funds to choose from — to determine how well they integrate sustainability into their offerings. The companies are given a green, yellow, red, or grey score, where green is the best and red is the worst. A grey score means that the company’s model differs too much from the other companies in the analysis, meaning that it can’t be evaluated in all four criteria and therefore get a grey total score. This year, we had 4 companies reach a green score when considering all criteria (up from 3 in 2022). Our analysis to determine the top companies offering unit-linked insurance looks at four areas: Sustainability in the selection of funds, engagement work, communication and transparency, and supply of funds. In Futur’s case, we found that they have the most funds out of all analyzed companies that pass our sustainability analysis with a green score, and they also make it easy for their customers to find these funds. To ensure that their funds have a high sustainability rating, they use an internal sustainability score based on a survey sent to the fund managers, as well as external sustainability data. They use this score to ensure that new funds included in the supply contribute to increasing the overall level of sustainability in their category. Futur also reaches out to funds that don’t align with their investment policy and remove them from their supply if they see no improvement within 6 months. To have a proactive approach and find these before they stray away from the policy, they maintain ongoing dialogues with all fund companies with sustainability and equality as recurring agenda points. Futur receives a green score in our 2023 analysis thanks to their extensive supply of sustainable funds and continuous work to keep improving. Read the full report (in Swedish): https://online.flippingbook.com/view/418617392/
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Leading by example!
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Keep up the good work
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Futur doing all for the Future
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Folksam is a Swedish insurance company that provides unit-linked insurance to its customers. In our latest analysis, they rise up as one of the best thanks to their work with selecting funds with a high level of sustainability and helping their customers make better investment decisions. Folksam is one of the top insurance companies in our 2023 report “Sustainable unit-linked insurances”. Every year, Söderberg & Partners evaluate Sweden’s 13 biggest providers of unit-linked insurance — insurance that allows long-time investment of your occupational pension, with a range of different funds to choose from — to determine how well they integrate sustainability into their offerings. The companies are given a green, yellow, red, or grey score, where green is the best and red is the worst. A grey score means that the company’s model differs too much from the other companies in the analysis, meaning that it can’t be evaluated in all four criteria and therefore get a grey total score. This year, we had 4 companies reach a green score when considering all criteria (up from 3 in 2022). Our analysis to determine the top companies offering unit-linked insurance looks at four areas: Sustainability in the selection of funds, engagement work, communication and transparency, and supply of funds. Folksam decides on which funds to include in their supply based on internal and external sustainability analyses. They aim to include funds that either promote environmental or social characteristics, or have sustainable investment as their objective. As a result, a lot of their selected funds get a green score in our sustainability analysis, and they communicate it well to their customers by providing them with filter tools and with plentiful sustainability information about each of the funds on their platform. In terms of engagement work, Folksam regularly contacts funds that are flagged in their regular screenings to ask how they are working with it. If they notice a lack of will to change, the fund will be removed from their supply to make sure that they work with funds that want to be a part of the transition. Read the full report (in Swedish): https://online.flippingbook.com/view/418617392/
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Folksam is going in the right direction!
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The Swedish insurance company SPP uses an internal sustainability analysis as a key parameter for including new funds in the selection presented to their customers. They also take great care to help customers choose the most sustainable funds to include in their portfolio. SPP is one of the top insurance companies in our 2023 report “Sustainable unit-linked insurances”. Every year, Söderberg & Partners evaluate Sweden’s 13 biggest providers of unit-linked insurance — insurance that allows long-time investment of your occupational pension, with a range of different funds to choose from — to determine how well they integrate sustainability into their offerings. The companies are given a green, yellow, red, or grey score, where green is the best and red is the worst. A grey score means that the company’s model differs too much from the other companies in the analysis, meaning that it can’t be evaluated in all four criteria and therefore get a grey total score. This year, we had 4 companies reach a green score when considering all criteria (up from 3 in 2022). Our analysis to determine the top companies offering unit-linked insurance looks at four areas: Sustainability in the selection of funds, engagement work, communication and transparency, and supply of funds. At SPP, fund managers are expected to have a goal of climate-neutral investing by 2050, and to take steps towards meeting that goal already today, or face consequences for their unwillingness to be more sustainable. SPP is also in active dialogue with their fund managers to ensure that they understand the importance of phasing out investments in fossil fuels and deforestation. In terms of fund selection, SPP provides plenty of information to its customers. For example, they display the sustainability score of their funds, based on the sustainability score of the individual companies included in each fund. They also provide a wide range of funds that get a green score in our sustainability analysis. Overall, SPP does a lot to make it easy for their customers to find good and sustainable funds where they can invest their pension money, and for that, they have received a green score in our analysis. Read the full report (in Swedish): https://online.flippingbook.com/view/418617392/
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Great! Businesses that are sustainable, produce profits over the short & long terms, while also adding value to society and abiding by environmental regulations.
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Wow. They have very great measures to influence climate restoration actions.
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Great job SPP! Looking forward to hearing about your work at Stockholm Climate Week
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When we insure our things, we can make an active choice to support a company that actively integrates sustainability into its insurance offering. In our Traffic Light Report, we have promoted IF for its sustainable actions in the non-life insurance sector. They leverage their position as an insurance provider to push their suppliers and customers to be more sustainable. At the same time, they put effort into reducing their own carbon footprint. The 2022 winner in the category of sustainable non-life insurance, IF, has had a well-developed sustainability work for a long time. With an ambitious code of conduct that places high demands on suppliers and continuous calls for customers to act responsibly, they leverage their position to expand their positive impact. They also work to reduce their own carbon footprint through clear goals, regular risk assessments, and proactive action. They drive the development of sustainability integration in the insurance industry by funding scientific research on the subject, which means that they will develop their own sustainability practices going forward. About the Traffic Light Report On March 16th, we released our newest “Traffic Light Report”. This report includes analyses of 3648 funds, 26 pension companies, 13 fund and deposit insurance companies, and 27 non-life insurance companies to find the best actors in the industry. We communicate the results to help our customers make well-informed decisions and increase the sustainability level of their investments.
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This is impressive.
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Insurance motivates people to get involved 💚
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💚 This is where the #Action ls!!🇸🇪
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Investors can have a huge impact on sustainable development in society. Using its in depth sustainability analysis, Robeco takes action to drive sustainable development within the financial sector by engaging with holdings and collaborating with peers. This both helps to allocate capital to sustainable solutions and encourages holding companies to transition towards a net-zero society. For this, they have been promoted for their sustainable actions in the investing space in the 2022 Traffic Light Report. This year's winner has long been a role model in sustainability. Their innovative and data-driven sustainability analysis encompasses a holistic approach to the difficult trade-offs that arise in the work toward sustainable development. With the support of this unique analysis, they work actively to drive change in the industry through their far-reaching engagement and active involvement in industry collaborations. About the Traffic Light Report: On March 16th, we released our newest “Traffic Light Report”. This report includes analyses of 3648 funds, 26 pension companies, 13 fund and deposit insurance companies, and 27 non-life insurance companies to find the best actors in the industry. We communicate the results to help our customers make well-informed decisions and increase the sustainability level of their investments.
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Congrats! Well deserved.
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Congratulations to Robeco
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Kudos!
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Hur väcker vi ungas klimathopp? 🧒💡 Ungas hopp om att vi ska kunna lösa klimatutmaningen sjunker för varje år. Samtidigt känner den yngre generationen att deras egna möjligheter att påverka klimatet blir mindre och mindre. För att vi ska ha en chans att bekämpa klimathoten krävs nya idéer och innovationer. I jakten på lösningar måste alla generationer bidra – så hur kan vi väcka ungas klimathopp? Missa inte detta avsnitt av Söderberg & Partners med gäster: Klara Adolphsson, styrelseordförande för Våra Barns Klimat. Lingyi Lu, hållbarhetschef på Söderberg & Partners. Ingmar Rentzhog, grundare och VD av organisationen We Don’t Have Time. 📅 23 Februari - 15:00 CET https://www.youtube.com/watch?v=CB93Sje1t1Q Mer info: https://www.wedonthavetime.org/events/hur-vacker-vi-ungas-klimathopp
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Bra och intressant! Kan man få ta del av Klaras inledande presentation?
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35 mycket intressanta minuter, vilka gav hopp. Den stora frågan är dock - När släpper vi in 12-18-åringarna i styrelserummen?
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Bra och intressant!
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A new EU directive states that financial advisors must now ask for and consider an investor’s sustainability preferences when guiding their investments. Financial advisors have been following EU legislation for a long time, but until now advisors were only required to ask for preferences in terms of risk for the investments. This new legislation requires us to also ask for sustainability preferences to get more people to invest in solutions to our environmental crises. At Söderberg & Partners we see this as a welcome and necessary step in the transition to a low-emission society. The new directive states that all financial advisors need to ask three new questions before recommending what to invest in: - What percentage of your investments do you want to be sustainable investments? - Should the products that you invest in take negative sustainability consequences into consideration? - What percentage of your investments do you want to be put towards products with a specific focus on the environment? By asking these questions, we can get investors to think about the sustainability of their investments. According to the EU, a sustainable investment is something that contributes to environmental and/or social sustainability and does not harm it in any way. In addition to that, it must also comply with current rules and practices in corporate governance as well as international standards and norms. The EU taxonomy could for example be used to fulfill the criteria for environmentally sustainable investments. There are challenges in this, however. “The majority of the companies that we can invest in are only taxonomy compliant in a small part of their operations, at best. The taxonomy is a narrow definition of environmental sustainability, and at the same time it is widely discussed whether political forces have allowed certain ‘unsustainable’ operations on the taxonomy list.” says Lingyi Lu, Head of Sustainability at Söderberg & Partners. One reason is that the data required to decide how sustainable a company is, according to the taxonomy, is not always available. To improve this directive, companies need to disclose more of their sustainability data so that we can match investments to the investor’s sustainability preferences. As a financial advisory company with a lot of experience in sustainability analysis, we hope that this directive will continue to develop and help investors direct their money toward more sustainable innovations. (Swedish) Read more on our website: https://www.soderbergpartners.se/newsroom/hallbarhet/nya-regler-ska-framja-hallbara-investeringar/ Read more about the new EU directives: https://www2.deloitte.com/nl/nl/pages/financial-services/articles/mifid-ii-esg-amendments.html Photo by Guillaume Perigois on Unsplash
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Sustainability literacy and preference should by instilled among investors not only in the EU but also all over the world.
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This is good, hopefully, it will nudge people in the right direction. But agree with Markus, this is only a first step
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This is a bold move. Its a nice way to make people conscious of their decisions towards climate change.
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Through the strategy Aktiv Påverkan (“Active Engagement”), Söderberg & Partners Asset Management (“S&P”) leverages the power of an active ownership profile to reach long-term sustainability goals. The strategy has both supported companies in preventing child labour in their supply chains and worked together with companies to find ways to reduce their carbon emissions. Our first theme, child labour, was initiated in 2019 and ended in early 2022, and we now have results to show for it. What is Active Engagement? Active Engagement is a fund strategy that we have created for investors that want to contribute to positive and sustainable development. The strategy invests in other funds with a high sustainability rating based on Söderberg & Partners own sustainability analysis, but it also invests up to 10% directly into listed Nordic companies. The goal of these direct investments is to be an active investor and have a dialogue with the companies to steer them toward meeting the 17 UN Sustainable Development Goals, “Agenda 2030”. Once per year, we ask the investors one question: “If you could steer a part of your occupational pension savings towards creating value on top of financial returns, which area would you choose to create value in?” The response to this question guides what area the fund should focus on going forward. Themes so far include investments that mitigate child labour, investments that lead to reduced carbon emissions, and investments in companies that work against the throwaway society, i.e., investments that contribute to the transition towards a circular economy. From idea to action - making a change through investments After deciding on a theme, we contact an organisation specialized in that field, an expert that can help us with the formation and development of the project and support our work with the companies we invest in. For the theme of mitigating child labour, we collaborated with The Centre for Child Rights & Business, a subsidiary of Save The Children. We then analyse and discuss several small or medium enterprises (SMEs) internally to select which ones the strategy Active Engagement should invest in. The reason we invest in SMEs is that our potential for change is much higher in these cases than when investing in larger companies where our position would be smaller. It is also uncommon for SMEs to be scrutinized by the media to the same extent, meaning they are less likely to change on their own accord. Once we have decided what companies to invest in, we initiate a dialogue with them together with our expert to analyse the companies and potentially help them improve. Within the theme of mitigating child labour, we decided to invest in Boozt AB – an e-commerce company that sells fashion and lifestyle products, and Bergman & Beving AB – a franchise that provides products and brands for industry and construction. In the case of Bergman & Beving AB, we came to focus on their subsidiary Guide Gloves, a global company that manufactures different types of work gloves. “We wouldn’t have been able to do this on our own” The results from both investments have clearly been positive. In the case of Guide Gloves, our project together with Save The Children led to an updated code of conduct for suppliers. A code of conduct is a policy document that guides what suppliers need to do to be accepted as suppliers. The existing document had not been looked over in a long time, mainly because Guide Gloves did not feel they had the knowledge required to do so. The updated code of conduct included age limits for workers per country, and the company claims that this would not have changed if Söderberg & Partners and Save The Children had not offered to provide their support in this project. In the case of Boozt, the work resulted in a workshop with around 30 participants from Boozt’s suppliers where Save The Children educated them on the importance of child rights. This resulted in a systematic control that Boozt is applying to their suppliers to gather data on how they respect children’s rights. The goal is to be able to make a central policy document, stating clear and relevant demands. These results are very promising for our continued work with the strategy Active Engagement. Both investments made progress that they would not have accomplished without our involvement, and we are looking forward to making similar progress in our other two ongoing themes: reduced carbon emissions and circular economy. We will report the results from these projects here on We Don’t Have Time once we have them, so stay tuned to learn more about how we as investors can work to help the companies that we invest in be more sustainable! (Swedish) For more information on the results from the child labour theme, read our full report. This is a marketing communication, please refer to the prospectus of Söderberg & Partners Funds and to the KID of the relevant product before making any final investment decisions. The prospectus and information on investor rights are available in English, while the KID is available in both English and Swedish. All documents can be found on the www.soderbergpartners.lu/documents. Marketing arrangements made for the products in Luxembourg and Sweden may be terminated in the future.
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Very promising results. Continue with that sustainable spirit of development.
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I hope that the results will be as good for the climate-related themes - we certainly need investors to take more responsibility here!
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This is a Noble cause ...this is killing two birds with one stone..
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We need a faster transition to low carbon technologies and lifestyles, and shifting money towards low carbon innovations is a crucial step towards reaching that goal. New innovations have paved the way to reducing our use of resources and fossil fuels, but the adoption and scale-up of these innovations needs to speed up. Many parts of the world are currently facing the highest inflation rates in over 40 years, leading economists to question whether it is wise to focus on the climate transition now, even if we are running out of time to act. From a financial standpoint, there are two main avenues for adopting climate friendly innovations more quickly. The first is increasing the cost of emissions to incentivize businesses and consumers to produce and consume more sustainable products. This could be achieved through carbon credits or carbon taxes. The other option is to make low carbon alternatives more competitive through governmental subsidies and investments, financed by tax income or state loans. These are both excellent examples of climate friendly financial policies, but they run the risk of worsening the inflation crisis. So what could be done to ensure that a fast climate transition doesn’t cause another spike in inflation? Stimulating the climate transition can increase inflation rates The strategy of increasing emissions costs will lead to reduced emissions in the long term, but increased costs for consumers in the short term. This in turn amplifies the effects of already high inflation rates and risks making them even higher and more long-lasting. The effect of shifting demand to more sustainable products could also lead to higher demand than supply, which also increases prices, especially since businesses that can’t transition fast enough are forced out of business. The other strategy, investing in more sustainable innovations, could also affect inflation rates, depending on how it is financed. If it’s financed through taxes, the overall wealth will simply be redistributed from taxpayers to governmental investments, which doesn’t increase inflation. However, if the investments are financed through state loans, this will expand the economy and amplify inflation while investments are being made. Even though investments can be canceled the inflation may have already spread to higher salaries, making the higher inflation rates last longer. A faster transition will mitigate inflation Both strategies, on their own, run the risk of increasing inflation in the short term, and have the potential for long term consequences that could worsen inflation even more. The primary cause for concern here is the risk for increased prices for consumers as a result of sharp changes in supply and demand. These changes need to be mitigated by introducing new innovations parallelly to phasing out old, emission heavy practices. The market will support the new innovations naturally once policies that make climate friendly innovations more competitive have been introduced but until this happens there is a risk of increased inflation due to demand outgrowing supply of low carbon innovations. In other words, a balanced transition needs early investments in climate friendly innovations, so they are readily available when old practices are phased out. Even though governmental investments can cause higher inflation, it can also shorten the time until the inflation gets mitigated. Fast and large investments in low carbon innovations increase the availability of these innovations for companies. This means that the shock from shifting demand from consumers and businesses is mitigated, as there is already a supply of low carbon innovations to meet that demand. This reduces the inflationary pressure in the first stage of the transition, and the transition as a whole is faster. Higher availability also reduces the need for cost increases on emission heavy practices, as businesses that want to transition can do so more easily. A faster transition is beneficial both for the climate and for the economy. By taking measures to increase the pace of transition, we shorten the period of increased prices and minimize the effect on inflation. A slower and more drawn out transition runs the risk of creating a worse investment environment, which further slows down the transition and makes it harder for us to reach our goals. Additionally, a completed transition will leave us with a more diversified mix of energy sources, which makes energy prices more reliable and future inflation more stable. The global effects of a faster transition One reason for these financial incentives not being implemented is that emissions trading or carbon taxes can, in the short term, make regions where they are applied less competitive, since they are subjected to initial increases in costs compared to regions that have more lenient climate legislation. Global treaties for increased carbon costs in all regions have so far proven ineffective, which means that front runner regions like Europe run the risk of being punished in the short term for their leadership. Once the market has transitioned to lower emissions, however, they will be equally or more competitive than other regions, since they have been forced to adopt innovations that will be required on a global scale in the future. This also makes them more attractive for investors and consumers in the transition period. In conclusion, the climate transition has a connection with both inflationary pressure and a loss of consumer purchasing power. It is, however, clear that the transition will be forced on us whether we want it or not, and the sooner and faster we transition, the better it will be on all fronts. Most importantly to reach our urgent climate goals, but also to become more self-sufficient and to reduce negative effects on inflation and the economy at large. In the long term, the climate transition is expected to result in more stable inflation and a better business environment for investments, as well as a competitive advantage to the regions that are front runners in the transition. Read our full strategy report (in Swedish) to learn more about this analysis and other financial analyses from this year.
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Thank you for your great insight, and for using it to further emphasize the importance of transitioning away from high carbon fuels as soon as possible!
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In order to scale the best solutions to the climate crisis, large financial investments need to be made in the right sectors and in the right companies. For a financial advisor firm like ours, this means that it is crucial that our clients and advisors have the best tools available to discern where the money has the most positive impact. We continuously follow up to ensure that sustainability is incorporated into our advisory tools and digital interfaces like the Fund Finder. Fund Finder is our own digital fund platform, available to all our clients. By presenting the sustainability information of each fund alongside the financial information, we want to make it easy to choose the best fund to invest in both for financial returns and positive climate impact. Our ESG team, responsible for Söderberg & Partners’ sustainability analyses, also gives each fund sustainability ratings. The funds have two partial ratings, on positive selection and active engagement, and an aggregated sustainability rating where the two partial ratings are equally weighted. We also have a comment on the fund company level about their sustainability profile. The tool has a filtering function for the funds' sustainability rating, SFDR classification and exclusions, where the ESG team has gathered what exclusions the funds have directly from the fund companies, such as fossil fuels extraction, tobacco and weapons. The platform also shows all exclusion criteria for the funds on the fund's individual page. Analyses like these are continuously being integrated into more and more of our work as advisors. The ESG team works closely with each business area to develop relevant analyses and integrate sustainability into our tools and consultations, and to date, sustainability is integrated into 79% of our advisory tools in Sweden. We have sustainable portfolio mandates ready for clients to choose if they do not want to form their own portfolio according to their preferences. We have also bought a large sustainability data package that we are going to apply to many of our digital tools, including Fund Finder. Once applied, this data will give us better conditions for a deeper analysis of the sustainability profiles of the financial products, which we will make available to our clients for even more informed decisions. Do you know what your saving funds invest in? Do they align with your personal values? If you’re not sure, ask your fund provider and let them know what you want your money to go to. Your voice is important, and we can move a lot of money to the right projects together.
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Enabling good investments!
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Highlights: - How investing in an organization can help you influence their sustainability work. - S&P invests in 4 companies to reduce carbon emissions and accelerate the transition to a circular society. The world is facing big challenges: resource scarcity, climate change and demographic change. As we strive toward a sustainable future, rapid decarbonization is essential and we need to implement creative ways to help companies make the right decisions for emission cuts. One way to influence the direction of a company is to invest in it. Through the strategy Aktiv Påverkan (“Active Engagement”), Söderberg & Partners Asset Management (“S&P”) leverages the power of an active ownership profile to reach long-term sustainability goals. Investors in the strategy can vote on the sustainability topics that matter the most to them and thus determine engagement themes for the strategy. Investments leading to reduced carbon emissions was voted as one of the most important themes in 2020. To help deliver on this, S&P partnered with the Swedish Environmental Research Institute (“IVL”) as they possess expert knowledge in the field of emissions and decarbonization. In 2021, S&P invested in Stendörren Fastigheter and Diös Fastigheter within the theme – two Swedish property companies owning, developing, and managing properties. The focus was on collecting climate-relevant data and future construction plans for the companies. The data was necessary for IVL to produce a climate calculation and materiality analysis to identify which parts of the company’s operations can be targeted for a reduction in carbon emissions. Following the climate mapping, workshops were held with project managers and key personnel to discuss the results, after which IVL compiled a final report describing the engagement. Both companies have now been provided with more of the tools necessary to improve their climate work. Another theme the investors in the strategy Active Engagement voted for is investments in companies working against the throwaway society, i.e., investments that contribute to the transition towards a circular economy. In this theme, S&P partnered with Research Institutes of Sweden (“RISE”), an independent state-owned research institute with science-based knowledge and experience working for sustainable growth in Sweden. Earlier this year, S&P invested in Elanders and Rottneros within the theme. Elanders is a service provider specializing in Supply Chain Solutions and Print Solutions, whilst Rottneros is an independent producer of market pulp. With the support of RISE, the aim of the engagement is to help both companies develop a circular business model by mapping their circular potential from different perspectives such as materials, products, and innovation. The engagement is currently ongoing, with the project being launched in early April and the next progress update planned for August. We’re seeing investment being used more and more as a way to influence climate action within businesses. S&P will continue to leverage this strategy as a way of using its power and influence to create positive change in the world. If you have any questions about Active Engagement, you’d like to share an example or case study on how this has been used successfully in the past, or if you have ideas for how S&P can improve its climate action then please leave a comment. This is a marketing communication, please refer to the prospectus of Söderberg & Partners Funds and to the KID of the relevant product before making any final investment decisions. The prospectus and information on investor rights are available in English, while the KID is available in both English and Swedish. All documents can be found on the www.soderbergpartners.lu/documents. Marketing arrangements made for the products in Luxembourg and Sweden may be terminated in the future.
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@Rentzhog, I can't answer how the analysis department of the Söderberg & Partners group integrates the usage of ESG scoring in their sustainability work. I just found it very confusing that you talked about S&P, ESG score and linked to an article about the Standard & Poor's ESG index.
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It's always great to see investors actively investing in solutions and incorporating science into what you should invest in. This should be a great way to have solutions take more room in your investment portfolio.
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That is great! Investments in real solutions are needed. I am curious how Söderberg & Partners works with ESG ratings when you provide asset management for your clients? Are you using that? ESG doesn't work at all for the climate, unfortunately. https://theconversation.com/how-a-sustainability-index-can-keep-exxon-but-drop-tesla-and-3-ways-to-fix-esg-ratings-to-meet-investors-expectations-183705 What is your view on this?
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