LUXEMBOURG, 10 March 2021—A wide number of Nordea funds (140) are tightening their requirements on fossil companies and are only investing in companies that are on a green transition path. In short, the energy companies must have a clear plan for how they intend to comply with the Paris Agreement, and they must visibly have started implementation.
“No oil and gas producers and of course coal miners live up to these requirements at present, but quite a few electricity companies do,” explains Eric Pedersen, Head of Responsible Investments at Nordea Asset Management (NAM), the largest asset manager in the Nordics.
The initiative is the next step for NAM in its investment strategy for limiting global warming, as it has committed to do as a founder member of the international Net Zero Asset Managers initiative.
“The key measure to limit global warming is to reduce emissions from fossil fuels. The energy companies must have a strategy for complying with the Paris Agreement and limiting emissions from fossil fuels – and they must have started the hard work of changing their business model,” says Eric Pedersen.
At the same time, tobacco companies will be excluded from the 140 funds. All in all, most of Nordea’s funds – over 200- will now be aligned with the stricter fossil-related restrictions. Nordea’s new requirements come into force on 10 March – the same day as the first part of the EU’s new Sustainable Finance Disclosure Regulation (SFDR) takes effect.