To accommodate the rising demand for sustainable investment products, Danske Bank is adjusting six Danske Invest index funds so they now comply with article 9 of the EU’s Sustainable Finance Disclosure Regulation (SFDR).
The index funds will thus invest in activities that contribute to solving the climate challenges and creating a more sustainable society.
“We have adjusted our investment products because we are keen to make it easier for our customers – both personal and institutional – to invest in the green transition. All of the six funds track the EU Climate Transition Benchmark. This means that companies are selected or excluded in a way that ensure the funds help reduce climate impact and contribute to the green transition,” explains Thomas Otbo, Chief Investment Officer at Danske Bank.
Expanded selection of ESG investment products
As well as facilitating sustainable investing, Danske Bank is also expanding its range of ESG (environmental, social and governance) investment products with two index funds, so there will be more than 90 ESG funds in all that customers across Danske Bank’s markets can invest in.
ESG investment products are Danske Invest funds that promote ESG characteristics by, for example, investing in companies focused on the climate, labour relations, diversity or anti-corruption.
These products thus comply with article 8 of SFDR, which came into force on 10 March this year. The new EU regulation provide the financial sector with clear definitions of what may be termed as sustainable or ESG investment products.
A step closer to the Bank’s targets
Earlier this year, Danske Bank announced two specific targets for ESG and sustainable investment funds. The first was that customers increase their investments in ESG funds to DKK 400bn by 2023, and that at least DKK150bn be channelled into sustainable investment products by 2030.
“These newly adjusted investment products are the first step on the road to reaching our 2030 target, and we will be regularly developing and expanding our product range so we can create value for our customers and support the transition to a more sustainable society,” states Thomas Otbo, Chief Investment Officer at Danske Bank.