What do I need to know about Nordic Swan Ecolabelled funds
All of us can make a difference by purchasing goods and services that contribute to a more sustainable world. For nearly 30 years now, consumers have been using the Nordic Swan Ecolabel to find guidance on products that meet Nordic Ecolabelling’s strict requirements in areas such as the environment, health and quality.
Over the years, the Nordic Swan Ecolabel has helped us to influence companies to reduce their impact on the environment. As of now, we can also have an indirect effect on companies via Nordic Swan Ecolabelled funds. The aim of Nordic Swan Ecolabelled funds is to use the power of capital and ownership to steer companies in a more sustainable direction.
For an investment fund, carrying the Nordic Swan Ecolabel means that:
- The fund excludes investments in certain industries and companies that are particularly problematic from a sustainability point of view (please visit our Q&A).
- The fund conducts an extensive ESG (Environmental, Social and Governance) analysis of its potential investments and prioritizes companies that are more sustainable.
- The fund discloses all holdings on a quarterly basis. In addition, the fund publishes an annual report on the sustainability performance of the fund.
- Nordic Ecolabelling encourages active ownership and rewards funds that engage with investee companies.
The Nordic Swan Ecolabel does not imply that all of the fund’s companies are sustainable or without problems or challenges. The aim of our requirements is to make your investment in a Nordic Ecolabelled fund move markets, industries and companies in a more sustainable direction. Perhaps you have not thought about it, but when you put money into investment funds you indirectly become an owner of quite a few companies. As investment funds basically consist of pooled assets from multiple investors, the power and potential of the investor collective is huge. We are convinced that if many investors select Nordic Ecolabelled funds, we as a group will be able to contribute to a more sustainable world.
Please note that the Nordic Swan Ecolabel is no guarantee of future financial return. Moreover, the Nordic Swan Ecolabel is not an evaluation of financial risks associated with the fund.