Active ownership 

Integrating nature related risk in the finance sector

We want to contribute to biodiversity protection with our investment activities and are currently assessing our impact.

You can't manage what you don't measure

As a first initial step, we did a high-level screening of direct nature-related impacts and dependencies for our portfolio of equity and bonds using the measurement tool ENCORE.

The web-based tool, called ENCORE (Exploring Natural Capital Opportunities, Risks and Exposure), helps global banks, investors, and insurance firms assess the risks that environmental degradation, such as the pollution of oceans or destruction of forests, causes for financial institutions.

Storebrand 's highest exposure to impact-related risks stems from

  • the solid waste impact driver
  • water pollutants
  • soil pollutants
  • water use
  • non-GHG air pollutants 
  • GHG emissions.

The industries in our portfolio with the most material nature-related impacts drivers are utilities, consumer staples, materials and industrials.

Storebrand’s highest exposure to dependency-related risks stems from 

  • the mass stabilisation and erosion control ecosystem service
  • surface water
  • bioremediation
  • groundwater 
  • flood and storm protection.
     

The sub-industries with the most material nature-related dependencies are consumer staples, materials and utilities.

The impacts analysis was conducted between mid-June and mid-July 2022, followed by the dependency analysis between mid-July and mid-August. Given that it is a high-level analysis, the results provide an initial picture of the potential impact and dependency-related risk associated with Storebrand Asset Management’s portfolio. It shows how our aggregate investments directly depend on key ecosystem services and how they impact nature.

Further analysis is recommended to understand these impact and dependency-related risks in greater detail.

Results Summary - Impacts and Dependencies analysis

Historical returns are no guarantee of future returns. Future returns will depend, among other things, on market developments, the manager's skills, the fund's risk profile and management fees. The returns can be negative as a result of price losses. There is risk associated with investments in the fund due to market movements, developments in currency, interest rates, economic conditions, industry- and company-specific conditions. Before investing, customers are advised to familiarize themselves with the fund's key information and prospectus, which contains further information about the fund's characteristics and costs.