Does a Nordic Swan Ecolabelled fund only invest in "sustainable" companies?

No, there may be companies that are not perceived as sustainable. For example, companies that are in a process to become more sustainable, regulated by given transition criteria.

A Nordic Swan Ecolabelled fund must exclude companies and industries that are furthest from sustainable. Most of the fund’s assets, 70%, shall be invested in companies with strong sustainability practices. Stricter requirements are set on companies operating in industries that are strategically important for reducing carbon dioxide emissions and preserving biodiversity.

The Nordic Swan Ecolabel does not assess individual companies. However, the Nordic Swan Ecolabel criteria govern how the fund manager shall analyse and assess companies. This means that the least sustainable companies are avoided, and the more sustainable companies are selected.