Our sustainability work
We work to create a good return for our customers while at the same time striving towards a sustainable development. We do this in several different ways. We have signed the UN Principles for Responsible Investment and are members of Swesif, Sweden's forum for sustainable investments. But the real difference is in the day-to-day asset management. We integrate environmental, social and corporate governance (ESG) factors into our investment decisions and also consider negative impacts on sustainability. We work with several partners whose skills complement our own, and who share our view on the importance of sustainable investments.
Our internal ability to understand sustainability risks and how we can capture tomorrow's winners is constantly evolving. We strive to be better and show what really makes a difference.
We want to be here in the future
- Commitment to asset management in line with the climate goals of the Paris Agreement: Net zero emissions by 2050.
- Ruth Asset Management has signed the initiative: Net Zero Asset Managers Initiative. We have set a long-term goal of achieving an asset management compatible with net-zero emissions by 2050.
ESG House View sets the framework for sustainable investments
- Integrate sustainability risk into fund and portfolio management.
- Process for due diligence.
- Continuous assessment of asset allocation.
- Exclusion criteria, best-in-class and impact.
Active ownership
- We use our influence where we can.
- For the funds where we delegate the asset management, we evaluate how the fund companies integrate sustainability aspects in their investment process, how committed they are as owners and whether they are members of any sustainability-related organization.
Collaborations and analysis
- We supplement our competences with partners who share our view on responsible investments.
Our funds are divided into four categories based on their level of sustainability:
Analysis model
An important element of our asset management is sustainability analysis using a proprietary, quantitative model: the Sustainability CubeTM developed by Qblue Balanced.
The rating system in the Sustainability CubeTM takes into account the companies' current sustainability standards as well as future ones in the assessed dimensions, each of which accounts for one third of the total points given to a company. Companies with high sustainability risks receive low ratings, while companies with low sustainability risks and great sustainability opportunities are rewarded with high ratings.
Sustainability indicators used to measure a company's performance within the three parameters are briefly described below.
- Climate transition points: Measures how well a company is positioned to take on the challenges resulting from climate change. The data that is taken into account are various measures of carbon dioxide emissions, whether the company has clear goals regarding carbon dioxide emissions and how the company's work to reduce the carbon dioxide footprint is progressing in reality.
- ESG score: Measures financial risks and opportunities related to environmental, social and governance (ESG) issues and the companies' management of these. A low score reflects high financial risks and limited opportunities related to ESG, while a high score reflects low financial ESG risk and good opportunities.
- Combined score for the UN Sustainable Development Goals: Measures how well a company follows each of the UN's global sustainability goals, for example by identifying how much of a company's revenue or products and services are associated with individual sustainability goals. The score measures current contributions, progress and sentiment.
Read more about the model in the respective fund's prospectus.