Responsible investments
AB SEB bankas (hereinafter ‘SEB’) strives to have a comprehensive and competitive investment offering, with sustainability risks and adverse sustainability impact consideration integrated into our investment processes and products.
To achieve this, SEB has adopted the Policy on the Integration of Sustainability Risk and Impact into Investment Decisions and Recommendations (PDF)
About sustainability preferences
A range of EU-wide sustainable finance measures have been introduced on 2 August 2022. Among other requirements, we must obtain information from clients about their sustainability preferences and take these preferences into account when assessing suitability of investments in the course of providing investment advice or portfolio management service.
There are three categories of sustainability preferences that reflect the clients’ choice:
- Sustainability principles are considered - the investment takes into account or mitigates possible negative impact on sustainability (for example, environmental risks, human rights violations, or poor governance practices).
- Sustainability is a goal of investment - investments that contribute the environmental or social objectives (for example, more efficient energy or raw material resource usage, or social integration and labour relations) provided that the investments do not significantly harm other sustainability objectives and that the investee companies follow good governance practices.
- Investments are focused on environmental issues - investments must be environmentally sustainable, significantly contributing to the achievement of at least one environmental objective (such as climate change mitigation or the circular economy) and meeting the technical monitoring criteria.
Investors that have any of these preferences should decide to what extent the investment should meet the corresponding preference. At SEB, we use three levels - low (not less than 10%), medium (not less than 30%), and high (not less than 60%).
Sustainable Finance Disclosure Regulation (SFDR)
The Regulation 2019/2088 of the European Parliament and of the Council on sustainability‐related disclosures in the financial services sector (also referred to as SFDR) describes the rules on how financial market participants (including the fund managers and discretionary portfolio managers) shall publish information related to integration of sustainability risks, consider adverse sustainability impacts in their processes and provide sustainability-related information.
In accordance to SFDR, SEB has adopted the Policy on the Integration of Sustainability Risk and Impact into Investment Decisions and Recommendations (PDF).
In addition, SFDR requires the classification of investment products into categories based on their sustainability characteristics as Article 6, 8, and 9 instruments, with criteria for investment selection and terms of disclosure of information on the instrument.
Article 6
These funds consider sustainability when making investment decisions and shall transparently describe the potential negative impacts on sustainability, but do not promote environmental or social aspects and do not have sustainable investment as a goal. Such investments take into account at least several relevant indicators, for example, CO2 emissions, carbon footprint, gender pay gap, exposure to controversial weapons, and exclude certain industries e.g. fossil fuels, industrial gambling, alcohol and tobacco.
Article 8
The funds classified under this article promote environmental goals or social characteristics, among others, or a combination of those, provided that the companies in which the investments are made follow good governance practices. Objectives of such investments is, for example, investing in human capital, renewable energy, reducing inequalities, greenhouse gas emission, fighting against corruption and bribery.
Article 9
The funds classified under this article are the highest-ranking sustainable investments - sustainability has to be the primary objective. Such funds focus solely on sustainable investments, for example, on climate change, renewable energy, reducing greenhouse gases and pollution, conserving clean water, habitats and species.
Portfolios offered in Robo-Advisor take into account the aspect of sustainability
At the moment, when providing investment advice or portfolio management services, promotion of environmental or social characteristics or sustainable investments is not our primary objective. However, when selecting ETFs for Robo-Advisor discretionary portfolios, we still take sustainability aspects into account – we prefer ETFs that are at least classified as SFDR Article 8-compliant instruments.
In our investment decisions, we consider sustainability risks and consider principal adverse impact according to our Policy on the Integration of Sustainability Risk and Impact in Investment Decisions and Investment Advice (PDF). However, according to the EU regulations, our portfolio management service cannot be classified as sustainability-promoting or sustainable financial product.
More about sustainability in investments area, including general principles and our last Principal adverse impact statement: Statement on principal adverse impacts of investment advice on sustainability factors (PDF).
Our other sustainability-related policies
Our policies in sustainability area
SEB has adopted a range of sustainability-related policies, including the Sustainability Policy, the Environmental Policy, the Human Rights Policy, and various sector-specific policies as well, all of which apply to the bank's investment decisions made when managing the discretionary portfolios.
These policies limit investments in companies related to the development and production of controversial weapons, fossil fuels, gambling and tobacco.
SEB recognizes the importance of international standards that help to create more sustainable business. SEB has joined or supports various international agreements and initaitives. In SEB's Sustainability Policy (PDF), you will find all the international agreements and systems supported by SEB.
Remuneration policy as regards sustainability risk assessment
SEB’s remuneration policy has been developed taking sustainability risks into account. The Company’s employees participate in the collective profit-sharing program established in the SEB group, which is based on certain common operational goals, including ones in the area of sustainability. The results are evaluated according to the targets set in the SEB Group’s business plan, including the carbon exposure index and the sustainability activity index.
