Sustainability information about funds
Here you’ll find information on sustainability considerations in our funds.
EU classification of mutual funds
The Sustainable Finance Disclosure Regulation (SFDR) came into effect in the EU on 10 March 2021. This has made it easier to compare financial products and services from a sustainability perspective, through uniform information and increased transparency.
The rules and legislation impose requirements on classifying mutual funds and include different categories depending on investment focus and how the fund is managed.
SFDR - “Sustainability-related disclosure in the Financial services sector”
SFDR is the regulation in the EU action plan for sustainable finance. SFDR ensures that financial institutions publish their financial products’ investment strategy, investment objectives and actual investments.
How do we handle sustainability risk in the advisory services?
What is sustainability risk?
Sustainability risk is events or circumstances related to:
- Environmental risk factors such as climate change, Co2 emissions or lack of resources
- Social risk factors such as human rights violations or corruption
- Management risk factors such as breach of shareholder rights or lack of governance and leadership
Sustainability risk can have a negative impact on the value of your investment.
The size of sustainability risk varies depending on companies, sectors and markets. Some companies, sectors and markets are particularly exposed to sustainability risk, and they can therefore constitute an increased risk of financial losses. For example, energy companies are known to have large greenhouse gas emissions and can therefore be subject to considerable regulatory pressure. Investments in such companies may therefore have an increased risk of financial losses related to sustainability risk.
Sustainability risk in investment advisory services
Part of the product range about which DNB Bank offers advice to its customers includes mutual funds managed by DNB Asset Management. In these funds, sustainability risk is integrated into the underlying investment processes. Read more about how sustainability risk is integrated into DNB Asset Management at Sustainability risk - integration into the investment process (norwegian only).
All internal and external funds used in the investment advice are subject to DNB’s corporate standard for responsible investments. The standard is based on international norms and standards. It ensures that DNB does not contribute to an infringement of human and employee rights, corruption, serious environmental damage or other actions that can be perceived as unethical. It will also ensure that assessments of ESG risks are integrated into the management.
Only funds that have been approved after the bank’s product approval process, and that are in line with DNB’s corporate standard for responsible investments, shall be advised on. Beyond this, sustainability risk is not systematically integrated into our investment advisory processes.
More about the remuneration scheme
Only funds that have been approved after the bank’s product approval process, and that are in line with DNB’s corporate standard for responsible investments, shall be advised on. Beyond this, sustainability risk is not systematically integrated into our investment advisory processes and, therefore, it is not included in the assessment basis when variable remuneration is determined.
What is SFDR?
SFDR stands for “Sustainable Finance Disclosure Regulation” which is the EU regulation on disclosure of how advice on sustainability is being handled by financial advisers.
SFDR has been incorporated into Norwegian law and is in Norwegian called “Offentliggjøringsforordningen”. The regulation requires all financial advisers in Norway to publish an account of how sustainability is integrated.
Mutual funds that have sustainable investments as the designated main objective of the portfolio management.
Mutual funds that promote environment-related and social aspects in their portfolio management.
Mutual funds where sustainability risk is integrated into investment decisions.
Mutual funds not covered by the public disclosure regulation
This applies to mutual funds that are not subject to sustainability reporting requirements under SFDR.
We want to be open about our work on responsible investments, and regularly publish updates.
Proactive and reactive influencing dialogue with companies is a central part of our work. The discussions are structured processes with clear objectives for desired outcomes.
Climate and environmental mutual funds
For investors who are concerned about the environment, we have some selected funds that focus on climate, the environment and the oceans.
DNB exercises active ownership through dialogue and voting.