SEB Investment Management, a part of SEB group, is one of the largest asset management firms in the Nordics, with close to SEK 1000 bn in assets (as of 31 December 2020) for both private individuals and institutional investors, through more than 140 funds and discretionary mandates. Asset management activities range from broad solution products to niche funds in asset classes such as equities, fixed income securities, hedge funds, commodities, and Private Equity.
SEB Investment Management has high ambitions regarding sustainability and the firm works continuously to improve and develop this area. SEB Investment Management aims to make its total assets under management carbon neutral by 2040.
FACTS & FIGURES
|Inception of sustainability strategy||2008|
|Total AUM (USD)||112 billion*|
|AUM SRI Strategies (SEK)||256 billion|
|SRI/ESG Team||20 dedicated RI staff members|
MEMBER / SIGNATORY
|UN Global Compact||✓|
|Climate Action 100+||✓||since 2017|
|Other||✓||UNEPFI, the Equator Principles, Poseidon Principles, IPDD, SISD, SIDA|
|International Norm Violations||✓*||✓*|
|Anti-personnel mines & cluster munitions||✓||✓*||Weapons of mass destruction||✓||✓|
Proactive / Reactive Engagement
The engagement team of DNB consists of 5 people.
Source: Responsible Investments Report
SEB Investment Management (SEB IM)’s overall goal is to accelerate the reduction of the global economy's greenhouse gas emissions, while maintaining our commitment as asset managers which is to deliver satisfactory, risk-adjusted returns in the long term.
An essential factor in meeting the goals of SEB IM’s climate strategy, launched in 2021, is the increase in investments in companies that either provide solutions to sustainability challenges or enable the transition to a more sustainable economy. For example, SEB Investment Management aims to make total assets under management carbon neutral by 2040.
INTEGRATION & INTERNAL RESOURCES
To create a basic view of all potential investments' risks, adverse impacts and opportunities in terms of sustainability, SEB IM uses a proprietary sustainability model. The purpose of the model is to provide a relevant, systematic and forward-looking sustainability assessment tool.
SEB IM uses three main strategies in their sustainability activities: integration, active ownership and exclusion. Each strategy has clearly defined criteria.
Before investing in a company SEB IM carefully assesses it from a sustainability perspective. The assessment is made using the firm’s sustainability model.
For SEB IM, integration is about applying a systematic sustainability analysis during investments. More specifically, it is about making sure all sustainability issues are considered, analysed, quantified – and that sustainability is promoted – before, during and after each individual investment decision.
SEB Investment Management has developed its own sustainability model which – employing several external and internal data sources – gives each potential investment a sustainability rating. The rating is based on risks, adverse impacts, opportunities, the global sustainability goals, carbon footprint, etcetera and gives us an overview of each company's sustainability profile.
The purpose of the sustainability model is to give each company and individual, relevant, significant and forward-looking rating. The sustainability rating provides guidance on which sustainability factors that may have a negative impact on long-term risks and returns for the company in question.
Through the sustainability analysis SEB IM focuses on specific sector risks, adverse impacts, the sustainability aspects of different products and services, as well as impact in relation to long-term sustainable value creation.
SEB Investment Management’s sustainability model is a dynamic tool that will be continuously developed to ensure adaptation to both scientific research and changes in legislation. In the Sustainability Policy and the Climate Statement you can learn more about how SEB IM works with identifying companies that contribute to a sustainable development.
Committees & Teams
Board of Directors
The Board of Directors of SEB Group is responsible for the establishment of a strategy for corporate sustainability and an organisation to execute this strategy. The Board approves the Corporate Sustainability Policy for the SEB Group and the Sustainability Report, which is included in the SEB Group’s Annual Report. The Board is regularly updated on corporate sustainability matters.
The Group Executive Sustainability Committee
The President and CEO have established a Group Executive Sustainability Committee(GESC) to manage the execution of the corporate sustainability strategy in the SEB Group. GESC is a decision body that is chaired by the President and CEO.
Sustainability Product Committee
The Sustainability Product Committee decides on the right for SEB units to use any sustainability-reference in the marketing or distribution of products or services. These references include ESG, SDG and the EU Taxonomy.
At SEB Group, each Head of Division, Head of Group Support function and Head of Group Staff function have the responsibility to ensure that procedures and controls are in place in order to implement and adhere to the corporate sustainability objectives, strategy and policies set by the Board, the President & CEO and GESC.
Since long the bank (SEB Group) has a mandatory training in Code of Conduct in place, and in 2020 special focus was put on increasing knowledge about climate change. Consequently, SEB launched a training that is now mandatory for all 15,500 employees globally. The training consists of a digital lecture with Lisen Schultz, researcher and scientist at the Stockholm Resilience Centre, and founder and director of the Executive
Programme in Resilient Thinking. Based on decades of research as well as the latest findings, the training gives a comprehensive view of how the climate is changing, current and future effects, and what SEB as a bank can do to contribute.
Training for increased knowledge and awareness: In connection with the work on classifying its corporate customers’ climate impact, during the year a tailor-made training was launched to support customer executives and advisors prior to customer dialogues related to climate change. Workshops and seminars were also carried out in all divisions with corporate customers.
SEB Investment Management has adopted a remuneration policy that, among other things, regulates variable remuneration within SEB IM. In order not to create inappropriate behavior and contribute to excessive risk-taking, sustainability risks are one of the risks that are taken into account in the event of payment of variable remuneration
ACTIVE OWNERSHIP, ENGAGEMENT & STEWARDSHIP
For investments outside the Nordic region, the SEB Group collaborates with other investors through organisations such as The Institutional Investors Group on Climate Change (IIGCC, see below), PRI Clearinghouse, and Federated Hermes Equity Ownership Services. During the year, SEB conducted more than 2,000 dialogues (direct and indirect) with portfolio companies. The Investors Policy Dialogue on Deforestation (IPDD) is a unique investor commitment that coordinates dialogues with governments, public authorities and industry associations on systematic and sustainable land use and management of natural resources. In partnership with other institutional investors, we have had several meetings with the Brazilian government and the central bank to combat deforestation, fires and the loss of biodiversity in the Amazon.
SEB Group is also part of Swedish Investors for Sustainable Development (SISD), where they collaborate with other Swedish institutional investors and the Swedish International Development Cooperation Agency (SIDA).
SEB Group makes all the voting decisions by themselves. The Group review the recommendations given by a proxy advisor but makes the decisions by themselves. Each year there are a few cases where SEB votes differently than the proxy advisors’ recommendation.