DNB Grønt Skifte Norge (Green Shift Norway)

Active management means that the fund manager selects a different composition of securities in the mutual fund than the composition of the fund’s benchmark index in order to try to generate better returns.

Carbon intensity is a measure of how many greenhouse gases are released relative to a specific activity target.

Carbon intensity is the number of tonnes of emitted CO2 equivalents per krone of turnover

Liquidity in a company shows the company’s short-term ability to pay. A company has good liquidity if it has the ability to meet its short-term payment obligations when they fall due.

Liquidity in financial instruments such as shares and mutual funds often refers to how quickly a product can be bought and sold at a stable price. For example, the foreign exchange market is known to be a very liquid market. The reason for this is that there are so many participants, so if you execute a sales order it is likely that the currency pair will be sold before the price changes significantly, because there are always many people buying and selling that currency. Similarly, shares in the very largest companies will be more liquid than those in smaller companies.

The benchmark index is used as a reference point to compare a mutual fund’s return. The index can also be used as a source for choosing investments, but the mutual fund does not try to copy the composition of the index.

An investment in an economic activity that contributes to reaching an environmental goal or a social goal, and which does not cause material damage to any of these goals. An additional requirement is that the businesses invested in follow good management practices. (SFDR article 2.17).

Measures how the environmental and social properties promoted by the product (Article 8), or how the sustainable investment objective (Article 9) is reached.

Environmental, social and employee-related conditions, as well as factors such as human rights and combating corruption and bribery.

Environmental, social or management-related events or circumstances which can have an actual or possibly negative impact on the value of the investment should they occur. (SFDR article 2.22).

The Environmental, Social and Governance (ESG) score grades the company according to how well it handles risk and opportunities related to environmental, social and corporate governance. The score is an assessment of the company’s ability to meet international, generally accepted and measurable sustainability standards.

The regulation on disclosure of sustainability information in the financial sector.

EU taxonomy is a classification system whose purpose is to create common criteria for environmentally sustainable (“green”) activities.

Activities that count as environmentally sustainable (“green”) activities according to the taxonomy.

For an activity to have taxonomy liability, it must be covered by the taxonomy criteria, make a significant contribution to an environmental goal, not inflict significant damage to other environmental goals, and observe minimum standards for social conditions.