What requirements should a Nordic Swan Ecolabelled fund meet and how does it affect companies?

When many savers, professional investors, and fund managers join forces to exert influence, Nordic Ecolabelling is convinced that this will have an effect. Nordic Swan Ecolabelled funds have potential to make an impact by complying with the following: The requirements are divided into four areas.

1) Exclusion: The fund must refrain from investments in certain industries and activities that are particularly problematic (O4-O11). Read more about our exclusion requirements here.

2) Inclusion: The fund must perform a sustainability analysis of all holdings and prioritise the better companies from a sustainability perspective. The EU Taxonomy shall be taken into account in the context of the sustainability analysis. Read more about our inclusion requirements here. (O12-O15)

3) Transparency: The fund must regularly disclose which shares and bonds, etc. are held by the fund (O17) and issue an annual report on the sustainability activities of the fund (O18).

4) Active ownership: The fund engages with its holdings (P3). This is a points-score requirement, as it might not always be relevant to conduct engagement, but company dialogue is mandatory when holdings are suspected of violating international norms and conventions (O16). The fund shall meet 23 obligatory requirements. In addition to the obligatory requirements, the fund must collect a minimum of 6

(5 for bond funds) out of 14 points from a group of points-score requirements.