According to Tundra Fonder a sustainable investment is a competitive company with responsible and honest owners and a strong management. It is a company whose operations have a long-term positive impact on the society where they run their business. It is a company that sells products or services whose importance will increase in the future and which are produced in a way that respects important aspects such as environmental boundaries and workers’ rights. The fund is classified as an Article 8-fund in accordance with the Sustainable Finance Disclosure Regulation (SFDR) EU 2019/2088 which is applied to a fund that “promotes environmental and social characteristics”.
Since its inception, the fund’s sustainability analysis has been integrated into the financial analysis. Before investing, a detailed analysis is made of the company’s history, its owners and senior executives. We evaluate each individual portfolio company and analyze risks and opportunities from a long-term sustainability perspective. Investments are made in companies that are judged to be the best in their sectors, where we prefer to see our investment as a long-term collaboration to achieve the best possible results. We invest in companies whose operations in the future will constitute a larger part of the local economy and choose above all companies that we believe are driving in the development of society and exert a positive impact on the markets that the fund focuses on
In dialogue with the companies, an evaluation is made of the existing routines regarding both environmental, social and governance characteristics. Answers are obtained and feedback is provided for the company’s further development. The information collected is used in the financial analysis and may have a material impact on our investment.
- Environment (E): This refers to environmental criteria. Here we look at the individual company’s environmental impact, which includes the use of resources (e.g. water), waste management and carbon dioxide emissions. Tundra Fonder wants to see that the companies in which the fund invests show a reduction in carbon dioxide emissions relative to the scope of operations over time.
- Social issues (S): This area primarily concerns workers’ rights. We look at general working conditions, ie that the company’s employment conditions are decent, work environment safety, training opportunities and that there are policies in place to counteract discrimination. As an active owner, Tundra Fonder AB strives to achieve an impact on gender equality in its portfolio companies. This is because growth in the economy is positively affected by more people being employed. But also because it improves the company’s opportunities to attract the best possible workforce in the long term to drive the business forward. In order to measure and improve gender equality, the basic steps focus on three measures: i) Female representation on the board; ii) Female representation in company management; iii) Comparisons with other companies in the same geographical region.
- Good corporate governance (G) is central to conducting a long-term competitive business and is a prerequisite for well-functioning sustainability work. The history of each company’s principal owners and senior executives is documented and analyzed. Historical business decisions of importance are analyzed and an assessment is made as to whether internal control systems, controls and routines are in place that allow the conduct of an efficient business that can be conducted in accordance with the law. Tundra Fonder AB also conducts AML, KYC and Adverse media screening of principal owners, board members and senior executives.
The portfolio holdings are regularly followed up through the Tundra Questionnaire, which is a tool for engagement where the focus is on the company’s reporting of sustainability policies and international guidelines of importance. The aim of this tool is partly to determine the level of existing sustainability work and the reporting of this today, but also to prepare the company for future changes that may be of importance to international investors in the future. In our surveys, we annually add current changes that will be important for international investors in the future and thus give companies the opportunity to begin work on these. The goal is to help the portfolio companies develop their sustainability work to a high international level. Every year, the companies that respond to the Tundra Questionnaire receive a follow-up letter in which they receive a grade for their current work and suggestions for changes that can raise the grade further.
Capital invested in a fund may either increase or decrease in value and it is not certain that you will be able to recover all of your investment. Historical return is no guarantee of future return.
The Full Prospectus, KIID etc. can be found at Buy/Sell and the Annual and semi-annual reports can be found at Annual Reports. You can also contact us to receive the documents free of charge. Please contact us if you require any further information:+46 8-55 11 45 70.
The fund does not invest in companies that violate international conventions on human rights, environment, labour rights or corruption (UN Global Compact) and do not initiate an action plan within twelve months after these breaches have been communicated by Tundra.
The fund does not invest in companies that are involved in the following products and services. A maximum of 5% (in certain cases 0%) of the turnover in the company in which the investment is made may be derived from the specified product or service:
- Cluster bombs, anti-personnel mines, chemical and biological weapons, nuclear weapons (Production/Distribution 0%)
- Other weapons and/or munitions (Production/Distribution 5%)
- Alcohol (Production/Distribution 5%)
- Tobacco (Production 0%/Distribution 5%)
- Commercial gambling operations (Production/Distribution 5%)
- Pornography (Production 0%/Distribution 5%)
- Fossil fuels (oil, gas, coal) (Extraction 5%)
- Uranium (Extraction 5%)
- Genetically modified organisms (GMO) (5%)
The fund has specific and stated criteria for selecting companies based on environmental, social and business ethics issues. A thorough analysis is made of owners and company management where the history and management of minority owners are examined. The analysis includes both quantitative screening (AML, KYC, Adverse media) of owners and senior executives as well as its own in-depth analysis. The company’s operations must be conducted in accordance with international conventions and standards, such as the UN Global Compact framework and the OECD’s guidelines for multinational companies. We also consider the 17 global goals under Agenda 2030. The company must live up to local legislation where we also take into account potential changes in legislation in the future. The company’s competitiveness is of the utmost importance as only the strongest companies in the long term have the opportunity to influence the development of a sector, or a country, in the area of sustainability. The company must have a positive impact on the society in which they operate, as this reduces the risk of negative government interference and in the long term is brand building. The company sells products or services whose importance will increase in the future and which are produced in a way that is sustainable with regard to the environment and workers’ rights. Our sustainability analysis is from a holistic perspective. This means that weaknesses in certain areas can be accepted provided that they are offset by strengths in other areas, and provided that the company is prepared to work with current weaknesses. The company’s goal should be to minimize its negative impact on people or the environment. The company conducts ongoing dialogue with the companies where the main purpose is to help them with current weaknesses. We encourage companies to develop measurable sustainability goals with a focus primarily on material risks for the company, its sector and geography.
TUNDRA’S SUSTAINABLE RESEARCH
Tundra’s sustainability research is an integral part of the financial analysis. The research is undertaken by members of the investment team who are based in Sweden, Pakistan and Vietnam. The main challenge when undertaking sustainability research in Tundra’s markets is availability of information which means the team has built an extensive database of the researched companies since inception.
In addition to our internal research capability, we work with Sustainalytics, as an external advisor and research partner for screening ESG related issues.
Tundra has also been a member of SWESIF (Sweden’s Sustainable Investment Forum) since 2011. Tundra’s Chief Sustainability Officer, Dr. Jennie Ahrén, is a board member of SWESIF since 2022.
Tundra Annual Sustainability Report 2020
Tundra Annual Sustainability Report 2019
UN Global Compact – Communication on Progress 2019/2020
Tundra Company Meetings 2019
Tundra Annual Sustainability Report 2018
UN Global Compact – Communication on Progress 2018
Tundra Company Meetings 2018
Tundra Semi-Annual Sustainability Report 2018
Tundra Case – Access Bank PLC
Tundra Focus – Smarter Health: Exploring eHealth in Kenya
Tundra Focus – Rana Plaza: 5-Years Later
Tundra Annual Sustainability Report 2017 [Appendix 1: Communication on Progress UNGC; Appendix 2: Company meetings]
Tundra Semi-Annual Sustainability Report 2017
Tundra Case – Aisha Steel Mills Limited
Tundra Case – Daewoo Express Bus Services
Tundra Focus – Views on ESG in Vietnam
Tundra Annual Sustainability Report 2016
Tundra Sustainability Report Q3 2016
Tundra Sustainability Report Q2 2016
Tundra Sustainability Report Q1 2016
Tundra Sustainability Report Q4 2015
Tundra Sustainability Forum Dec 2015