Scandinavian asset manager Swedbank Robur announced today the launch of Access Edge Europe, a new Paris-aligned equity fund. The new fund adds to the asset manager’s suite of funds aligned with the climate targets set out in the Paris Agreement, based on the EU Sustainable Finance climate benchmark guidelines.
The Paris Agreement is a multi-nation pact, drafted in 2015, developed by parties to the United Nations Framework Convention on Climate Change (UNFCCC) to combat climate change. The agreement’s main goal is to limit the global temperature increase in this century to below 2 degrees Celsius above pre-industrial levels, and to work toward limiting the increase to 1.5 degrees.
Last week, Swedbank Robur announced that several of the funds in the Access Edge family had achieved Paris alignment, including Access Edge Global, Emerging Markets, USA, Japan and Sweden. According to the firm, the introduction of the new fund provides investors with options for a Paris-aligned fund for each central market.
Linnea Zanetti, Portfolio Manager at Swedbank Robur, said:
”According to our experience, the overall growing awareness of the climate issue, has led to an increased customer demand for sustainable saving alternatives that puts the climate in focus. This development is completely in line with Swedbank Robur’s own climate strategy, and we are very pleased to be able to offer our customers funds that are in line with the Paris Agreement for all central markets.”
In order to achieve Paris-alignment classification, the funds must satisfy various criteria, which put portfolio companies’ emission targets in focus. According to the firm, All Access Edge funds reward investments in companies with low greenhouse gas emissions and aim to have about 50 percent lower carbon footprint than their benchmark index. Additionally, approximately 10 percent of assets are invested in companies that are considered to contribute to resolving the climate crisis.
“Some examples of the fund’s holdings are companies in the area of renewable energy, and companies that develop energy efficient solutions, such as electric vehicles and green buildings. In addition, the fund excludes companies that extract fossil fuels and producers with more than 5 percent turnover from power generation based on oil, gas or coal.”