During 2018, XACT Sverige (UCITS ETF) became the world’s first Nordic Swan Ecolabelled index fund. The Nordic Swan is the official ecolabel in the Nordics and was established by the Nordic Council of Ministers to assist consumers in making good environmental choices. The intent of Nordic Swan Ecolabelled funds is that the fund management company shall influence the companies in which the fund invests to develop a more sustainable direction. The fund shall fulfil 25 obligatory requirements relating to exclusion, inclusion, transparency and engagement.
A Nordic Swan Ecolabelled fund provides that:
- the fund and its index must fulfil requirements to refrain from investing in certain branches and companies that are particularly problematic.
- the fund and its index must fulfil the requirements of the sustainability analysis for conceivable investments and thereby prioritise the better companies.
- the Management Company shall state which holdings are included in the fund and annually report what sustainability work has been conducted.
- the Management Company is encouraged to work for active ownership and drive the engagement activities on behalf of the fund for the companies included in the portfolio.
The Nordic Swan Ecolabel on a fund does not mean that all of the companies in the fund are sustainable, are problem-free or lack challenges. The requirements of Nordic Swan is designed to influence, through your investments in the fund, the markets, sectors and companies in a more sustainable direction.
Read more at svanen.se/spararen
Our Nordic Swan Ecolabelled Funds
Our Nordic Swan Ecolabelled funds track indexes in which all of the obligatory requirements with regard to exclusion and inclusion of companies in accordance with Nordic Swan’s criteria are established in the index methodology. The index is calculated by SIX in collaboration with ISS Ethix and ISS Oekom.
The funds/index exclude companies involved in:
- Controversial weapons (0%)
- Conventional weapons and war materials (5%)
- Fossil fuels and uranium (5%)
- Tar sands (0%)
- Tobacco production (0%), distribution (5%)
- Alcohol (5%)
- Commercial gaming (5%)
- Pornography production (0%), distribution (5%)
- Violation of international norms, e.g., UN Global Compact
The fund/index includes:
- The companies within the investment universe with the highest sustainability ratings related to the environment, social and corporate governance issues.
- A minimum of 50% of the index companies, measured in the total market value of the index, should be deemed as leaders within sustainability.