Danske Bank takes huge leap forward in responsible investments

In future, around 95 per cent of all Danske Invest funds will be either ESG funds or funds with a sustainable investment objective.

Institutional clients will soon have even more attractive responsible investment opportunities at Danske Bank.

Many Danske Invest funds are set to be re-categorised in December, so they can be classified as either ESG funds or funds with a sustainable investment objective, as defined in Articles 8 and 9 of the EU’s Sustainable Finance Disclosure Regulation (SFDR).

Consequently, after the re-categorization more than 130 funds across Danske Invest’s markets will be classified as ESG funds and 10 as funds with a sustainable investment objective.

“Responsibility and sustainability are important strategic focus areas for us at Danske Bank, so it is very positive that we can now offer our investment customers an extensive range of ESG funds and funds with a sustainable investment objective. In our view, this is in the interests of both investors and society,” says Thomas Otbo, Chief Investment Officer at Danske Bank.
“We look forward to being able to communicate in more detail on how we, through our work in the individual funds, integrate and influence sustainable development.”

Robert Mikkelstrup

CEO of Danske Invest.
Investors will receive more insights
For Danske Invest, the new re-categorisation of funds is an important milestone in their work with responsible investments. After the re-categorisation, around 95 per cent of all Danske Invest funds will be either ESG funds or funds with a sustainable investment objective.

“We are constantly working to develop relevant investment products with a focus on sustainability – both to accommodate customer demand and also to help support the shift towards a more sustainable society,” says Robert Mikkelstrup, CEO of Danske Invest.

Compared to previously, the changes among others mean that, going forward, investors will receive more insight into the work being done with responsibility in the individual funds.

“We look forward to being able to communicate in more detail on how we, through our work in the individual funds, integrate and influence sustainable development,” says Robert Mikkelstrup.

The two types of responsible funds
The two fund categories are useful indicators for investors who are keen to invest in funds that focus on responsibility:
FUNDS WITH A SUSTAINABLE INVESTMENT OBJECTIVE (Article 9) target to invest in economic activities that contribute to a sustainable objective. This can be activities that contribute to environmental goals, such as renewable energy, biodiversity and the reduction of CO2; social goals, such as good working conditions or social integration; or a combination, such as a broad focus on supporting the UN Sustainable Development Goals (SDGs).
ESG FUNDS (Article 8) do not have sustainable investments as their objective, but can still contribute to promoting the positive development of society. The funds promote environment (E) or social factors (S) and also ensure good governance (G) by, for example, influencing the companies they invest in via active ownership, and by de-selecting companies that do not perform well on ESG metrics.
This material has been prepared for information purposes only and does not constitute investment advice. Note that historical return and forecasts on future developments are not a reliable indicator of future return, which may be negative. Always consult with professional advisors on legal, tax, financial and other matters that may be relevant to assessing the suitability and appropriateness of an investment.

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