Open website’s mobile version Top

Responsible investments

Investing sustainably and responsibly is an essential part of our business at SEB. We believe that companies who have an organised, long-term approach to sustainability issues increase their chance of succeeding.


Responsible and active ownership

SEB is investing in companies worldwide on behalf of private, corporate and institutional clients. Our clients expect us, in our role as shareholders in companies, to act responsibly. This is why it's essential for the companies we invest in to responsibly manage any environmental, social and governance impact that may be associated with their business activities. We believe that companies who actively manage the environmental, social and governance aspects of their business activities are better positioned to reduce risk and take advantage of opportunities.

As a large institutional investor, we aim to work with companies to create value in the long-term.


Influencing through dialogue and collaboration

As a shareholder, we at SEB work to influence the companies in which we invest in order to improve their performance in environment, social issues and corporate governance. We do this primarily through dialogue, collaborating with other investors. If our dialogue with a company does not lead to a change after a reasonable period of time, we can consider excluding the company from its investments.

On the corporate governance side, we engage actively in annual general meetings (AGM) as well as in nomination committees, with a particular focus on gender equality on boards and transparent yearly board evaluations. SEB regularly participates in 30 nomination committees in Swedish companies where we are among the largest shareholders.

Through our involvement in the UN Principles for Responsible Investment (PRI) and CDP, which works with carbon disclosure, we collaborate with investors worldwide.

We also work with Hermes Equity Ownership Services, an international leader in dialogue with companies. Hermes EOS maintains ongoing, direct dialogue with the management and the board of the companies in which we invest. Working with other asset managers, under the leadership of Hermes EOS, enables us to be even more successful in conducting dialogue with companies outside Sweden. These are the companies in which we normally have a smaller stake.

Our key areas in 2016 as related to PRI and CDP were:

  • Climate, with a focus on palm oil and carbon emissions from utilities companies
  • Human rights in regard to access to medicine and the extractive sector

SEB also participates in Sustainable Investment Forum (SIF) in Sweden, Finland and Denmark, which brings together the organisations working for and with sustainable investments in their respective countries.


Systematic screening of companies

SEB’s processes for responsible investments are supported by a systematic screening of Swedish and international companies. This systematic screening aims to detect violations of international conventions and guidelines on environmental responsibility, labour rights, human rights, controversial weapons and corruption.

Examples of international conventions and guidelines we follow are the UN Global Compact (unglobalcompact.org) and the OECD Guidelines for Multinational Enterprises (oecd.org).

SEB invests in companies that follow international conventions and guidelines. If a company we invest in is implicated for violating these guidelines, we initiate an active dialogue with the company to influence them to change and improve their sustainability work. If, after a reasonable period of time, the company fails to meet these standards, SEB decides whether to exclude the company from its investments.


Controversial weapons

Some types of weapons are not in accordance with international conventions and guidelines. In 2009 SEB’s Council for Responsible Investment decided to exclude companies that manufacture and/or sell controversial weapons such as anti-personnel mines, cluster munitions, and chemical and biological weapons.

We exclude companies involved in, for example, the production or marketing of these types of weapons, from our equity funds and bond funds as well as several index funds that bear the name of SEB and are included in SEB’s fund offering.

The list of excluded companies is updated semi-annually.

Below is a list of companies excluded as of 1 February 2017
  • Aeroteh SA, Romania
  • Aryt Industries Ltd, Israel
  • General Dynamics Corp, USA
  • Hanwha Corp, Republic of Korea
  • L-3 Communications Holdings Inc., USA
  • Lockheed Martin Corp, USA
  • Motovilikhinskiye Zavody OAO, Russia
  • Orbital ATK Inc, USA
  • Poongsan Corp, Republic of Korea
  • Poongsan Holdings Corp, Republic of Korea
  • S&T Dynamics Co Ltd, Republic of Korea
  • S&T Holdings Co Ltd, Republic of Korea
  • Textron Inc., USA

 

Nuclear weapons

SEB decided in autumn 2013 that companies involved in the development and production phase of nuclear weapons programmes would not be included as investments in active fixed income funds, equity funds and several index funds that bear the name of SEB and are included in SEB’s fund offering.

SEB believes that the use of nuclear weapons would cause great human suffering which would violate fundamental human rights, which is why we regard nuclear weapons as controversial weapons. Although some countries are allowed to hold and maintain nuclear weapons under the Non Proliferation Treaty of 1968, all treaty signatories have committed to disarmament.

The list of excluded companies is updated semi-annually.

Below is a list of companies excluded as of 1 February 2017
  • Airbus Group NV, France
  • Areva SA, France
  • Babcock International Group PLC, UK
  • BAE Systems PLC, UK
  • Boeing Co, United States
  • BWX Technologies Inc., USA
  • China Shipbuilding Industries, China
  • Cohort, UK
  • Constructions Industrielles de la Mediterranee, CNIM SA, France
  • Finmeccanica SpA, Italy
  • General Dynamics Corp, USA
  • Huntington Ingalls Industries Inc., US
  • Jacobs Engineering Group Inc., USA
  • Larsen & Toubro Ltd, India
  • Lockheed Martin Corp, USA
  • Northrop Grumman Corp, USA
  • Premier Explosives Ltd, India
  • Raytheon Aerospace & Defense, USA
  • Rolls Royce Holding PLC, UK
  • Safran SA, France
  • Thales SA, France
  • United Technologies Corp, US
  • Walchandnagar Industries Ltd, India


Thermal coal

SEB decided in 2016 not to invest in listed companies that derive more than 20% of the turnover from the extraction of thermal coal.

The list of excluded companies is updated semi-annually.

Below is a list of companies excluded as of 1 February 2017
  • Adaro Energy PT, Indonesia
  • Alliance Resource, USA
  • Banpu, Thailand
  • China Coal Energy H, China
  • China Shenhua Energy H, China
  • Coal India, India
  • CONSOL Energy, USA
  • DMCI Holdings, Philippines
  • Exxaro Resources, South Africa
  • Indo Tambangraya Megah PT, Indonesia
  • Lubelski Wegiel Bogdanka, Poland
  • Semirara Mining & Power, Philippines
  • Tata Power Co, India
  • Yanzhou Coal Mining H, China

 

Companies in the following index, the MSCI All Countries World, SIX Nordic, OMX and VINX, are screened by SEB's external supplier of sustainability analysis, ISS-Ethix. Read more about how ISS-Ethix works.

To summarise, we apply a basic level of sustainability requirements to all our actively managed funds. This means we do not invest in companies active in controversial weapons, nuclear weapons and thermal coal, as described above. We aim to follow the same sustainability criteria for SEB's index funds and funds-of-funds as we follow for SEB’s other funds. However, different index fund may exclude different companies, depending on which external supplier provides the sustainability analysis.

The process of excluding a company from an index fund can take some time.

Most of SEB's fund-of-funds meet our sustainability criteria by investing in SEB funds or external funds selected by SEB. When our fund-of-funds invest in external funds, we require that the external fund managers sign the UN Principles for Responsible Investment or the equivalent. SEB pursues an active dialogue with external fund management companies whose funds invest in companies that SEB has excluded.

Contact

S|E|B

Tähelepanu! Teie veebilehtiseja ei vasta SEB kodulehe külastamiseks vajalikele nõuetele. Palun vahetage veebilehitsejat või seadet, millega te veebilehte sirvite.

Attention! Your web browser does not correspond to the requirements needed to visit SEB website. Please change web browser or device that you use for browsing the site.

Внимание! Ваш браузер не отвечает требованиям, необходимым для посещения сайта SEB. Просим поменять браузер или устройство, при помощи которого вы производите поиск в браузере.