Sustainable Solutions Portfolios 

Storebrand manages active, global equity sustainable solutions mandates by investing in companies that we believe contribute to achieving the UN Sustainable Development Goals (SDGs).


Global Equities – Sustainable Solutions

The UN Sustainable Development Goals are the blueprint to achieving a better and more sustainable future for all. They address the global challenges we face, including those related to poverty, inequality, climate, environmental degradation, prosperity, peace and justice. 

We seek to invest in companies that provide solutions, primarily through the products and services they provide to the market, and stand to benefit from the identified trends within the SDGs. We refrain from investing in companies whose main business is the production and/or distribution of fossil fuels.
 

The Storebrand Global Solutions Fund

Investing in companies contributing to sustainable development and achieving the UN Sustainability Goals.

Storebrand Global Solutions
 

    «Solution Companies»

    Storebrand operates with a solutions company whitelist which consists of companies that significantly contribute to sustainable development without causing substantial harm to environment or society.

    Examples are companies whose key business is centered around investment themes like renewable energy, technologies for sustainable city development, circular economy and recycling, electric public transport, water management, energy efficiency, sustainable materials and technology, responsible consumption and production, empowerment through access to health services and financial services in emerging markets.

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    Storebrand's Sustainability Score

    Storebrand Asset Management has a strong focus on Sustainable Investment and a 25-year history of using sustainability data to inform investment decisions. We fundamentally believe that investing in companies well positioned to deliver on the UN's Sustainable Development Goals (SDGs), will deliver better risk-adjusted long-term returns for our clients.

    Since 1997, Storebrand has utilised an in-house Sustainability Score as an investment support tool. Since inception, we have improved the score incrementally, in line with better ESG data access, and changes in perceptions on the role of sustainability issues in investments. We use the Storebrand Sustainability Score, and other qualitative information, to give portfolio managers a better understanding of portfolio companies' performance on sustainability. In addition, the score is used to optimize portfolios towards better performing companies and to calculate an internal fund rating.

    We calculate the Sustainability Score on over 4500 companies and base it on a 0-100 scale. It is comprised of two main building blocks, ESG risks and SDG opportunities. On the ESG risk side, the score assesses companies' exposure to, and management of, financially material sustainability risks. On the SDG opportunities side, we analyse sustainability data sources, to find companies whose products and services contribute positively to the achievement of financially relevant SDGs. For products and services, we source FTSE Russel Green Revenue data, in addition to internal research, to identify solutions companies. The SDG opportunities section of the score also has a company operations dimension, particularly related to Gender Equality.

    Fund Managers at Storebrand Asset Management are able to access the score on a number of levels. Total Score, Risk Score, SDG Score, and scores for underlying themes within these building blocks, are all readily available. The data sources underpinning the scores are external sources from quality controlled data providers, coupled with internal research. The following providers are currently in use:

    • ESG Risks: Sustainalytics ESG Risk Rating (50%)
    • SDG Opportunities - Products & Services: FTSE Russell Green Revenue Streams plus internal research (40%)
    • SDG Opportunities - Operations: Equileap data on Gender Equality (10%)

    The Sustainability Score is relevant across asset classes. Implementation of the score is dependent on the style and risk profile of the fund/portfolio in question.

    SustainabilityScore

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