Our sustainability rating explained
The Storebrand Group's sustainability rating assigns scores to the companies in our funds on the basis of risks and opportunities linked to environmental, social and corporate governance (ESG) factors. For clients and other stakeholders, it provides an overall picture of sustainability elements in our funds.
The scale ranges from 1 to 10. A rating of 10 means that a fund has a low sustainability risk and a high proportion of companies that contribute to the Global Goals for Sustainable Development. Note that companies with operations in developed markets such as Europe and the USA often have a higher sustainability rating than those in emerging markets. The sustainability rating is relevant for all asset classes.
The sustainability rating should not be seen as a recommendation to buy, hold or sell fund units or to make investment decisions. We reserve the right to make any errors in information.
The rating is made up of two elements: 50% ESG risk and 50% opportunities linked to the Global Goals. The risk component is based on data from Sustainalytics' ESG Risk Rating, which measures companies' exposure to and management of financially relevant sustainability risk. For the remaining 50%, ESG data sources are analysed to find companies with products and services that make a positive contribution to meeting financially relevant sustainability goals linked to the Global Goals. Storebrand carries out an internal company analysis, using data from FTSE Russell Green Revenue. For Global Goals, gender equality in companies is also taken into account.
In addition to Storebrand's own analysis, we also use data from these carefully selected, high-quality data providers:
- ESG Risk Score: Sustainalytics ESG Risk Rating (50%)
- SDG Score - Products & Services: FTSE Russell Green Revenue and Internal Analysis (40%)
- SDG Score - Business: Equileap Gender Equality Data (10%)