Our journey towards carbon-neutral funds
In 2022, we will set an interim target for 2030 and establish our strategy for net-zero greenhouse gas emissions for all funds by 2050. We are well on track to reach the targets and have been able to reduce our emissions with over 50% since the reference year of 2019. To increase transparency and credibility, we will report annually on progress towards the target as part of our PRI reporting and in our Annual Report for Responsible Investments. Our latest TCFD aligned Climate Report and our Climate Change Policy can be found on our Reports page.
Our funds have a carbon footprint far below that of the underlying market, which can be reviewed in our Annual Review of Responsible Investments. This is partly due to our investment philosophy, which excludes fossil-fuel producers and avoids capital-intensive sectors, instead preferring companies with environmentally- and climate-smart solutions, health and well-being as well as digitalization and technological development.
The economic, social, and environmental consequences of climate change are increasing all the time. Science-based evidence suggests that simply slowing down current developments will not be enough. To reverse the trend there is a need for political will and change, especially with regards to the more efficient use of natural resources and technological innovation. Asset managers are responsible for the management of large investment flows. Our actions will be crucial in the global fight to reach the target of net-zero emissions by 2050 or earlier.
At Fondita, we want to play our part in the change. We consider climate risks in our ESG assessments on company level, before making an investment. We strive to map how companies utilize opportunities and manage risks related to climate change. For us it’s important that all our holdings in all of the funds have a carbon reduction target or are working towards one. As signatories for the Net Zero Asset Managers initiative, we aim for carbon neutrality in all funds overtime in line with our goals.
Net-zero emissions for all investment assets is a goal that requires dedication, and by working together with the companies it’s achievable. By joining Net Zero Asset Managers initiative we work together with asset managers in achieving net zero.
The Net Zero Asset Managers initiative was launched in December 2020. The initiative aims to encourage asset managers to set a net-zero emissions target by 2050 and invest accordingly to achieve the Paris Climate Agreement’s target of a maximum temperature increase of 1.5 °C. By the end of 2023, a total of 315 signatories with USD 57 trillion in assets under management had committed to the initiative, and the commitments continue to grow each year.
For more information: www.netzeroassetmanagers.org
Environmental certificates
Environmental certificates given to our funds
Environmental certificates for investment funds provide investors with assurances that certain criteria are being met regarding how environmental factors are integrated into a fund’s investment process and holdings. The Nordic Swan certificate is the most well-known and credible certificate within the Nordics, which was awarded to Sustainable World in 2020.
For an investment fund, carrying the Nordic Swan Ecolabel means that:
- The fund excludes investments in industries and companies that are particularly problematic from a sustainability point of view.
- The fund conducts an extensive ESG analysis of its potential investments and prioritizes companies that are more sustainable.
- The fund discloses all holdings on a quarterly basis. In addition, the fund publishes an annual report on the sustainability performance.
- Nordic Ecolabelling encourages active ownership and rewards funds that engage with investee companies.
Fondita