Sustainability-related disclosures

Below you will find general information about Ruth Asset Management's sustainability work, including how we work to integrate sustainability risks in our business operations and take into account negative consequences for sustainability factors. 

Specific sustainability information per fund can be found on the respective fund page.

Policy for responsible investments

Ruth Asset Management's Policy for responsible investments is the overarching guiding document for the Fund Company's work to integrate sustainability in the management and act as a responsible investor. Read more here. 

Definitions and method description for sustainable investments according to SFDR

The Fund Company offers products that promote sustainability or make sustainable investments in accordance with EU regulation 2019/2088, Regulation on sustainability-related disclosures in the financial services sector (SFDR).

Article 2.17 of the SFDR defines the concept of sustainable investments. A "sustainable investment" means an investment in an economic activity that contributes to an environmental objective or a social objective, provided that such investments do not significantly harm any of those objectives and that the investee companies follow good governance practices. 

For this purpose, the Fund Company has developed a framework for sustainable investments, where the Fund Company specifies its definition and method for sustainable investments according to the SFDR.

Integration of sustainability risks

Ruth Asset Management takes sustainability risks into account, which is further described in a separate Policy for the integration of sustainability risks in the asset management process. Additional information can be found in the respective fund's prospectus, and or the sustainability-related information for the respective fund. 

Due diligence for negative consequences for sustainable development

Ruth Asset Management meets the definition of financial market participant and has decided to take into account principle adverse impacts for sustainability factors according to Article 4 of the SFDR.

The Fund Company's Due Diligence routines ensure that sustainability risks and the respective fund's sustainability ambitions are taken into account in the investment decisions. Depending on the fund strategy, these routines will differ.

Below follows a description of the company's Due Diligence routines to consider negative consequences for sustainability factors. Read more in the Fund Company's Policy for Due Diligence.

Identification and prioritization of main negative consequences and indicators for sustainable development

Ruth Asset Management identifies principle adverse impacts for sustainability factors in potential investment objects by analysing the sustainability indicators that the Commission has decided on related to climate and environment , social and labour-related issues, human rights, anti-corruption and anti-bribery. The analysis of the identified sustainability indicators is includes as part of the Company's overall sustainability analysis.

The Company will prioritize negative consequences associated with greenhouse gas emissions as well as social and labour issues. Specifically, this refers to emissions of greenhouse gases, carbon dioxide footprint, the greenhouse gas intensity of invested companies and exposure to fossil fuels. With social and labour issues, the company prioritizes the share of invested capital involved in violations of global agreements and conventions as well as the share of controversial weapons. 

The prioritization is partly based on the availability and quality of data. During the continuous screening of the portfolios, priority is given to the indicators where the data coverage is good. This priority will be set as the data coverage develops.

Further information is available in the company's Due Diligence policy, see above.

Description of the main negative consequences for a sustainable development and measures taken with regard to these

Ruth Asset Management has decided to consider principle adverse impacts for sustainability factors in the management of funds and has thereby identified the following potential negative consequences for sustainability: 

• Emissions of greenhouse gases, negative impact in areas characterized by sensitive biological diversity, emissions to water, emissions of hazardous waste. 
• Social and labour-related factors such as pay differences depending on gender and gender-diversified boards.
• Exposure to controversial weapons (personnel mines, cluster munitions and chemical and biological weapons).
• Violations of international conventions and standards for human rights and corporate governance: The UN's Global Compact, the OECD's Guidelines for Multinational Enterprises and the UN's Guiding Principles on Business and Human Rights, UNGP.

The company considers negative consequences by analysing the performance of the holdings in relation to these areas and by striving to exclude companies that operate in sectors that are harmful to people and the environment or whose activities cause negative impacts. Prioritization and mitigation of negative consequences are continuously identified through the analysis model applied within the respective fund strategy.

All funds that make sustainable investments also consider negative consequences for sustainability factors through Do No Significant Harm-tests (DNSH tests).

The Fund Company regularly reviews all holdings to which the respective fund is exposed. When the funds invest in other funds, the managers have regular dialogues with responsible fund managers for those funds. In addition, the Fund Company can carry out advocacy work in relation to the funds' holdings in order to minimize the holdings' principle adverse impacts for sustainability factors. In cases where the Fund Company makes the assessment that holdings with proven deficiencies will not correct these, the holding must be divested with the best interests of the unit holders in mind.

Policy for shareholder engagement

Ruth Asset Management believes that companies that consider corporate governance, ethics, environmental issues and social responsibility in their business operations have better conditions to achieve strong value growth. It is therefore in the shareholders' interest that the companies in which the funds invest are able to handle relevant environmental, social and corporate governance factors and risks in an adequate manner. The company follows the companies in which the funds are shareholders and can, if necessary, conduct a dialogue with representatives of the companies.

The Fund Company's process for shareholder engagement looks different for different funds, depending on whether they are managed within the fund company or if the management is delegated, and whether the funds invests directly in the companies or via other funds. Further information can be found in the Company's Policy for shareholder engagement.

Codes of conduct for responsible business operations and internationally recognized standards

Ruth Asset Management has signed and supports the UN-backed Principles for Responsible Investment Initiative (PRI). The six principles focus, among other things, on integrating sustainability factors into investment analyses and decision-making processes, as well as being an active owner. 

The companies in which the funds invest must also live up to the basic principles incorporated in the UN's Global Compact, the OECD's Guidelines for Multinational Enterprises and the UN's Guiding Principles on Business and Human Rights, UNGP. 

Ruth Asset Management also supports the Paris Agreement and has signed the Net Zero Asset Management Initiative. Read more here.

Statement on principle adverse impacts of investment decisions for sustainability factors

Ruth Asset Management AB submits an annual statement on principle adverse impacts at entity level.

Refund policy

The company has integrated sustainability risks into its compensation policy, see more information here.

 

The information was last updated on 2024-06-01