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ConsultationNordic Swan Ecolabelled Investment Funds

Per Sandell, Product Manager2017 – 02 – 08

Why do we exist ?

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Why ecolabelled funds?

We are convinced that funds play an important role and function and can influence companies in a more sustainable direction

Our production and consumption must become more sustainable

Among thousands of funds, consumers need guides to funds that have an important role and function for sustainability

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We make it easy to choose the best

products and services from

an environmental standpoint

We make it easy to choose more

sustainable funds

There are many ways to work with funds for

increased sustainability

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Nordic Ecolabelling

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The Nordic Swan Ecolabel

• 1989 initiated by Nordic Council of Ministers

• Non profit organisation

• 125 employees in the Nordic countries

• 16 000 Nordic Ecolabel products

• 2000 companies have Nordic Swan Ecolabelled products/services

• 56 product groups

The Nordic Swan Ecolabel

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Nordic Swan Ecolabel: Type I – according to ISO 14024Comprehensive environmental criteria

Independent product audits

Criteria is decided upon without companies influence

Life-cycle perspective (from cradle to grave)

Adherents of circular economy

Successive and continuous re-evaluation of criteria

Recognition of the Nordic Swan Ecolabel in the Nordic countries91%

Funds

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Nordic Ecolabel& funds

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First pre-study 2001 – not a mature market

New initiative from Council of Nordic Ministers (CNM)

CNM asks for a pre-study 2014 Nordic Ecolabelling Board approves

CNM provide project funding. Consultant hired. Reference Group established.

Project plan

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AprilIdentify fund products

MayExclusion & Inclusion

JuneRequirements for the fund manager

August- NovemberWriting criteria

December – Februari ConsultationJune - Criteria for decision

Model of criteria

• Exclusion

• Including

• Transparency • Systems and

Processes

Areas

• Obligatory • Point

requirement

Type of requirement Good to know

• Funds must always fulfill obligatory criteria.

• In addtion, the fund must obtain 8 av 16 possible points.

• This ensures flexibility for the fund to work with sustainability issues.

• Different funds in an fund company can have different types of points.

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What is a Nordic Swan Ecolabeld Investment fund?

A Nordic Swan Ecolabelled fund is managed so

that it can affect companies in a more

sustainable direction. Requirements and audit

cover the investment fund in total and is

therefore no guarantee for each individual

holding. Nordic Ecolabelling criteria do not

cover financial risk or return.

• Extraction/refining/generating power from oil, coal, natural gas eller uranium

• Produce or sell tobacco

• Produce GMO crops

• Produce or sell weapons

• Violating selected international norms and conventions

What may a fund not have as a holding?

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If the fund invests in special "green" areas, points are given.

What shall the fund do and have as holdings?

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The fund shall make ESG analysis and use the analysis so that at least 50 % of the fund consists of companies with strong ESG practices.

• Reporting • Answer ESG related questions • View holdings • Company dialogues • Vote at Annual General Meetings

Transparency and Actions

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Who can apply for a licence?

• Licence: - The company who can take responsibility for all criterias

• Marketing licence: A licence that is based on another company's licence

• Applications are submitted to Nordic Ecolabelling in Sweden (Miljömärkning Sverige AB)

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How to use the Nordic Swan

Ecolabel?

• Free to use the Nordic Swan Ecolabel in all communications of the fund

• May not imply that the fund company is Nordic Swan Ecolabelled

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Where to use the Nordic Swan

Ecolabel?

Exampel

Good to know: • Licence fee is only paid

for Nordic unit holders

• Licence fee is paid in advance when licence is approved

What does it cost?

• Minimum annual fee: 1 500 euro/fund

• Maximum annual fee: 10 000 euro/fund

• Maximum annual fee: 100 000 euro/fondbolag

15 euro/miljon euro AUM

Application fee

3 000 euro/fund

Annual licence fee

Limits

Discussion

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• Can the right type of funds be labelled?

• Is there a fair level of exclusion?

• Is there a fair level of inclusion?

• Is transparency on a fair level?

About the consultation

We welcome all comments and views

• All consultation responses will be public• All comments received will receive feedback

from Nordic Ecolabelling• Response deadline is February 27th, 2017.

Send comments to per.sandell@svanen.se

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Thank you!