An investment solution can include considerations for sustainability and sustainable goals to varying degrees
The understanding of sustainability is rapidly evolving in the investment sector. To ensure a shared understanding of what we mean by sustainability, we have created this information page.
The UN’s sustainable development goals
The UN’s 17 Sustainable Development Goals (SDGs) aim to address some of the world’s most urgent challenges by 2030. The SDGs focus on how organizations can contribute to achieving these goals, which cover climate, equality, civil society, governments, NGOs, and more.
Climate change and the EU’s goals
The EU has set specific goals for companies' sustainable transitions. The aim is for the EU to be climate-neutral by 2050, and investments can help achieve this.
Sustainable investments focus heavily on climate change, which is driven by excessive CO2 emissions leading to atmospheric pollution. The consequence of this is global warming. CO2 emissions are necessary for the Earth's ecosystem to function, but the problem arises when too much CO2 is released, causing a greenhouse effect that harms the atmosphere.
ESG
When you invest, you can consider how companies handle environmental, social, and governance issues—known as ESG. This can include companies that support the fight against inequality or promote social conditions in the labor market. It can also involve investing in renewable energy or economic activities that help restore and preserve nature and wildlife.
Negative impacts
All companies impact society in terms of climate, environment, social responsibility, and the decisions they make.
The impact can be negative to varying degrees, for example, due to pollution, CO2 emissions, or a lack of focus on equality, poverty reduction, or anti-corruption efforts.
Sustainable transition – a shared responsibility
In the short term, some less sustainable investments may yield the best returns, but it should be considered whether one wants this at any cost. Analyses show that investments focusing on a more sustainable future will perform the strongest over a longer investment horizon.
An investment strategy consists of many elements that affect the overall result of your investment, such as time horizon, risk, return potential, and considerations for sustainability.
A Swan-labeled fund
An investment fund can call itself Swan-labeled when it meets 25 mandatory criteria. This includes excluding companies where more than 5% of their revenue comes from conventional weapons, tobacco, and the extraction, refining, or energy production from fossil fuels (thermal coal, oil, and gas) as well as uranium.
Additional information
If you need more information, you can visit our partners’ website below.