Values – Carnegie Fonder’s Sustainability Report
Focus is increasingly on sustainability. The concerns are rarely new to Carnegie Fonder because it has always been important to us to invest in companies for the long term and with limited risk-taking. That approach has meant that we have invested in well-managed companies as a matter of course, even before it was called sustainability, says CEO Hans Hedström in VALUES – Carnegie Fonder’s Sustainability Report .
Based on public debate, investors’ expectations and – not least importantly – our convictions, we are now working with sustainability and responsible investment in a more structured way. In particular, we are more proactive in our corporate engagement.
In this issue of VALUES – the Carnegie Fonder Sustainability Report – we try to describe how corporate engagement works. Fredrik Colliander and Karin Fries, for example, are working hard to encourage our Russian holdings to sign the Global Compact, the UN’s Ten Principles on how business should work with a set of core values in the areas of the environment, human rights, labour and anti-corruption. As Karin says in an interview on page 16: “Codes of conduct in the area are in somewhat short supply in Russia, so the response has been very enthusiastic. Five of our holdings have signed in the last year and we know that another two are about to.”
We think that alone is proof that our sustainability work is producing results. Many investors would like us to exclude fossil fuels, for example, but we prefer the word “avoid”. The point is, we try to be pragmatic. If we excluded companies like Stockholm Exergi, Kraftringen and Ellevio, our Carnegie Investment Grade fixed income fund would become “fossil-free”, but the companies would not. And what is actually most important? Put simply, companies need capital from firms like us to be able to transition to more sustainable business, as Mikael Engvall and Mona Stenmark explain on pages 8-9.
The critical aspect of our work is thorough analysis, in which sustainability topics and classic financial issues are integrated into the investment process. Later on in this report, our analyst David Östman describes our view on Duni, a key holding, and on the funds’ carbon footprint. As you will see, there are not always easy answers or obvious choices. This is why we must constantly challenge and further develop our methodology, which we do at Carnegie Fonder through training and workshops. Knowledge is power