Nordea Asset Management AB: Best ESG Team Europe 2023

Nordea Asset Management

Nordea Asset Management (NAM) launched its first sector-screened fund in 1988. Now, it employs one of the most experienced Responsible Investment (RI) teams in Europe. The RI team is comprised of 22 analysts levering proprietary ESG scoring models and an AI-powered ESG data platform. NAM reached a RI milestone of €161bn in June 2023, representing more than 67 percent of the group’s total AUM as of end of June 2023. NAM has developed a range of RI solutions designed to deliver positive performance and impacts. Nordea’s ESG STARS funds target companies with the potential to beat the benchmark in terms of alpha generation, sustainability standards and ESG impacts. NAM recently extended the STARS scope with a new fund focusing on Chinese equities and another on corporate bonds. Last year, it conducted nearly 1,000 engagements with portfolio companies to move the needle on climate, human rights and governance issues. NAM has identified methane reduction as one of the most cost-effective forms of addressing climate change and is pushing for more transparency and accountability in this arena. As part of their new global engagement on methane emissions reductions, NAM is urging investee companies to adopt higher standards of methane measurement, reporting and target setting. It initially approached 21 companies to join the Oil and Gas Methane Partnership. Eight have already signed up or expressed interest, and now NAM has targeted six more for inclusion. Nordea Asset Management has placed in award programmes since its first win in 2014. The long-running trend continues in 2023, with Nordea Asset Management claiming the title for Best ESG Team (Europe).