Responsible investing

SEB has integrated sustainability risks into investment decisions taken while providing portfolio management services, also into provision of investment advice and insurance advice as indicated in the Policy.

Sustainability Risk is the risk of any negative financial impact on a financial asset’s value. This negative impact can originate from the issuer’s of asset Adverse Sustainability Impact or from other Sustainability Factors (e.g. floods, loss of biodiversity, unhealthy staff, etc).

SEB targets that financial instruments offered via our advisory services and used in discretionary portfolios are managed in line with international standards. Therefore, we seek that managers of those funds should be signatories to UN Principles for Responsible Investments and have comprehensive sustainability policies in place.

SEB among other offers funds managed by SEB Investment Management AB and AS SEB Varahaldus. SEB IM analyses and manages exposure to sustainability risks and the transmission channels that could make such risks materialize through a strategy involving integration, engagement and exclusion.

Where SEB invests directly into debt instruments, SEB considers issuers’ sustainability risks. Issuers are reviewed in light of SEB exclusion criteria/sectors.

SEB considers principal adverse impacts of SEB investment decisions taken while providing portfolio management services, investment advice or insurance advice on sustainability factors.

Adverse Sustainability Impact is when an issuer of an asset has a negative impact on Sustainability Factors.

SEB has a sustainability policy framework with the purpose to guide Investment Decision Making. These policies include Sustainability policy, as well as thematic Environmental and Human rights policies.

SEB has translated sustainability related positions to restrictions on investments in businesses related to controversial weapons, fossil fuels, gambling and tobacco.

Also SEB targets that financial instruments offered via our advisory services and used in discretionary portfolios are managed in line with international standards. Therefore, we seek that managers of offered funds should be signatories to UN Principles for Responsible Investments and have comprehensive sustainability policies in place. SEB model portfolios do not include direct investments in companies shares, thus SEB has not adopted engagement policies.

SEB recognizes the importance of participating in and supporting internationally recognized standards that enable businesses to operate in a more responsible way. SEB adheres to major international sustainability initiatives and codes of conduct, including, but not limited to The Paris Climate Agreement, UN Sustainable development goals and UN Principles for Responsible Investments.

The SEB Sustainability Policy describes the international agreements and international frameworks that SEB adheres to.