Handelsbanken shifts EUR 12.5 billion in passive assets to new Paris Aligned Benchmarks

As the first Swedish asset manager Handelsbanken Fonder transfers five of their global and regional index funds to EU Paris Aligned Benchmarks. The objective is to provide our customers with access to investment products in line with the commitments in the Paris Agreement.

Reallocating existing AUM (assets under management) rather than launching new separate ESG products is a natural part of Handelsbanken’s strategy that sustainability shall permeate all funds in Handelsbanken Fonder. In December 2020 Handelsbanken Fonder made a commitment to the Net Zero Asset Manager initiative and has also set new sustainability targets for its assets under management. Shifting our core global index offering to Paris Aligned Benchmarks is an important step on our journey towards net zero.
By switching to Paris Aligned Benchmarks these funds will be a tool for investors to reduce the carbon footprint of their investments and align with the goals of the Paris Agreement. The move also supports Handelsbanken Fonder’s target to reduce the carbon intensity of its portfolios with 50 per cent until 2030 and the Handelsbanken Group’s goal to have net zero emissions of greenhouse gases as soon as possible and by 2040 at the latest.
 

Emma Viotti, Head of Index, ETFs and Passive solutions, Handelsbanken Fonder

–Reallocating capital to sustainable investments is a cornerstone of the EU Action Plan and for us it was a given, as it has been throughout the years, to move our current AUM in a more sustainable direction rather than creating new offerings. Our funds have been tracking negatively screened benchmarks for several years. Moving to Paris Aligned Benchmarks with a clear commitment towards carbon reduction and the alignment of our portfolios to the Paris Agreement is a natural next step. 

Facts regarding the new Paris Aligned Benchmarks

• The new benchmarks have been developed by the index provider Solactive and ISS ESG and operates in line with the regulations laid out for EU Paris-Aligned Benchmarks (EU PAB)
• The five benchmarks represent the global stock market, Emerging, European, US, and global small cap markets, respectively.
• The aim of the benchmarks is to reduce GHG emissions  both in relative terms towards their investable universe as well as in absolute terms with a seven per cent yearly decarbonisation. 
• The benchmarks go beyond the minimum requirements in the regulation starting at a GHG emission intensity reduction level of 55 per cent. 
• The benchmarks promote companies that set Science Based Targets and/or significantly contribute to the environmental goals in Agenda 2030. 
• The benchmarks are designed to maintain the same exposure to high-climate-impact sectors as their investable universe. This means that decarbonisation cannot be achieved by only shifting investments in to sectors with low climate impact.
• The benchmarks have a more extensive sector based screening in order to comply with the exclusion requirements of the Nordic investor. In addition to fossil fuels screening is done for activities such as weapons and military equipment, tobacco and commercial gambling among others. 
   

Handelsbanken funds being moved to Paris Aligned Benchmarks

• Handelsbanken Global Index Criteria
• Handelsbanken USA Index Criteria
• Handelsbanken Europa Index Criteria
• Handelsbanken Emerging Markets Index
• Handelsbanken Global Småbolag Index Criteria (Global Small Cap)

About risk
A fund’s historical return is no guarantee for future returns. The money you have saved can both increase and decrease in value, and it is not certain that you will get back all the capital you have invested. A complete information brochure containing fund rules, fact sheets and performance is available at www.handelsbanken.se/fonder.