Nordic asset manager SEB has announced changes in the investment policy of the SEB Green Bond Fund, effective 12 December 2017.
If the fund’s objective will remain the same – investing in bonds that focus on sustainability and environmental opportunities as related to climate change, adaptation and mitigation – the manager said a minimum of 80% of the bonds in the fund’s assets will be invested in green bonds against the current 70% minimum threshold.
Also the fund will follow specific sustainability criteria in addition to SEB’s basic sustainability principles, hence employing both positive and negative screening.
In SEB’s view, positive screening aims to identify companies that issues green bonds with a sustainability profile that directly or indirectly contribute to a sustainable development for the climate and the environment.
The firm also clarified its definition of negative screening, meaning the fund will not invest in companies that:
• Produce or sell controversial weapons or which breach international conventions regarding weapons such as cluster bombs, landmines, chemical and biological weapons
• Participate in the development of nuclear weapon programmes or produce nuclear weapons
• Have verifiably breached international norms regarding labour legislation, anti-corruption, the environment or human rights
• Have more than five percent of their turnover derived from the production of alcoholic beverages, tobacco, the production and/or active distribution of pornography, the production and/or sales of weapons or from commercial gambling
• Are involved in coal, gas, and/or oil exploration and extraction
Lastly the SEB Green Bond fund’s management fees will decrease as from 12 December 2017.