“There is a fundamental need to address the social issues facing society today,” says Thomas Sørensen, co-manager of Nordea’s newest endeavour.
A thematic global equity product, the global social empowerment strategy is managed by the same thematic boutique behind the global climate and environment strategy.
Addressing social issues
The solution focuses on the “S” in ESG, which Nordea says has often been overlooked in the last few years.
While solving environmental challenges continue to be important, the covid-19 pandemic has highlighted the urgent need to take on social issues as well.
This includes access to healthcare, education, and affordable housing to name a few.
The strategy focuses on businesses that provide solutions that address social issues, create a positive impact, and generate sustainable shareholder value.
Three thematic areas
Sørensen added: “Companies that offer solutions to these problems represent a compelling proposition for investors.
“We believe social empowerment— which is the main thrust of our strategy — is the next theme investors will turn their attention to as they seek to have a positive impact whilst achieving attractive returns.”
His co-manager, Olutayo Osunkunle, added: “The strategy invests in three thematic areas: vital needs, inclusion and empowerment.
“By allocating capital for positive social solutions, we aim to support sustainable global growth while contributing to the goals set out in the United Nations Sustainable Development Goals for 2030.”