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Avanza
Avanza Bank Holding |
  SEK |  %   SEK
Avanza Bank Holding |
  SEK |  %   SEK

Sustainability in the pension company

We at Avanza want to contribute to a better and more sustainable future for millions of people. This means creating opportunities for a better financial situation for each and everyone and encour¬aging more sustainable investments. Avanza Pension is an important part of this work.

Avanza Pension’s policy on sustainability risks requires that they are managed responsibly in order to reduce the sustainability risk in the investments of policyholders, insureds or other eligible investors. Sustainability risk refers to an environmentally related, social or governance-related event that, if it occurs, could cause an actual or potential material negative impact on the value of an investment.

Sustainability risks are managed in Avanza Pension’s operations mainly by offering an entry fund in the occupational pension product with active sustainability work as well as tools that make it easy for our customers to find and invest in sustainable choices themselves.

Entry fund with sustainability work

Avanza 75 is an entry fund in our occupational pension offer that is classified as a fund that promotes environmental or social characteristics according to Article 8 of the Disclosure Regulation (Regulation [EU] 2019/2088). The fund invests in a number of underlying funds and sustainability aspects are integrated in its management through two methods: opt-in, opt-out and influence. Avanza 75 opts into funds that promote environmental or social characteristics, but opts out of funds that invest in companies that violate international norms and conventions on the environment, human rights, fair labour and business ethics. At a minimum, it excludes companies that do not take action to address identified problems. Avanza 75 also opts out of funds that invest in companies involved in controversial weapons. In addition, Avanza Funds continuously assesses and dialogues with the underlying fund companies on their sustainability work. The underlying funds in Avanza 75 have all signed the Principles of Responsible Investments (PRI), the world’s leading proponent of sustainable investment and an independent body supported by the UN.

Decision support to help savers find sustainable funds

By continuously expanding our ESG tools and enabling fund analysis based on various sustainability criteria, we make it easier for policyholders, insureds and other eligible investors to filter out sustainable savings alternatives. Here we collaborate with and obtain data from Morningstar.

The expansion of our green tools is also a way to indirectly influence the funds represented on the platforms. Transparency increases and savers become more aware of available options. To be competitive and attract capital, it will therefore be even more important for the funds to live up to savers’ sustainability demands.

Examples of sustainability tools

  • Sustainability data in the fund guide – We have made it easier for our customers to see how funds work with sustainability by showing sustainability data in our fund guides.
  • Create a personal sustainability label – For some people sustainability means how we take care of the environment, while for others it can mean not investing in certain industries. By creating their own sustainability label, customers can find the funds that match their personal preferences based on four categories: Environment & Climate, Controversial Industries, Social Responsibility and Corporate Governance.
  • Fund portfolio analysis – In “My fund portfolio analysis,” customers can analyse their fund holdings. Besides a breakdown by industry and holding, they can also see how many of the funds have a low carbon footprint risk and how the fund companies work with the environment, social responsibility and corporate governance.

Integration of sustainability risks in investment decisions

For insureds who invest in occupational pension product’s entry solution, the likely impact of sustainability risks on their return is considered low since the entry solution consists of funds that are classified as Article 8 products according to the Disclosure Regulation and that exclude companies that make or have ties to controversial weapons, companies that violate international norms and conventions, and companies that generate more than 30% of their revenue from coal.

If the insured chooses to invest outside the entry solution, they make the investment decisions themselves and Avanza Pension does not provide any advice on how to invest their capital. The same applies to the policyholder in an endowment insurance, who also makes all investment decisions themselves. Consequently, Avanza Pension cannot integrate sustainability risks in the investment decision.

Does not take into account negative sustainability consequences of investments

Avanza Pension does not perform its own management services, with the exception of certain lending of securities, and does not provide personal advice. All investment decisions are made by the policyholder, the insured or other eligible investor. Avanza Pension has no possibility to take into account any negative consequences of these investments decisions.