View Legal Menu

Information about Saxo’s sustainability risk policy

 

Introduction   

This policy outlines Saxo’s approach to integrating Environmental, Social and Governance (ESG) factors within its investment risk management. Sustainability risk is of increasing importance. If this is not managed, it can have multiple consequences, including financial, legal and reputational. As Saxo includes sustainability risks in its investment framework, it helps us identify and manage potential adverse impacts to the environment and to human rights, as well as the associated risks affecting our clients and us. Saxo offers different products including managed sustainable solutions for clients. This Policy is reviewed periodically and updated when necessary to reflect changes in circumstances and actual practice. 

Objective

The objective is to take sustainable risks due to environmental, social or governance events into consideration in the investment decisions. 

Policy Statements

From a due diligence perspective, Saxo integrates the sustainability factors into the investment process. This includes an assessment of the likely impacts of sustainability risks on the financial return. Sustainability risks means if an environmental, social or governance event occurs could cause an actual or a potential material negative impact on the value of an investment. 

The use of ESG criteria may affect performance and therefore ESG investing may perform differently compared to a non-ESG benchmark that do not use such criteria. The relevant exclusions might not correspond directly with specific investors own subjective ethical views.

Sustainability risks may have an impact on long-term risk adjusted returns for investors. Assessment of sustainability risks is complex and may be based on ESG data which is difficult to obtain and may be incomplete, estimated, out of date or otherwise materially inaccurate. The impacts resulting from the realisation of sustainability risks may be numerous and may vary upon the specific risk, the region, sector and type of assets.

Examples of each type of ESG risk could include the following:

  • Environmental: climate change - ‘stranded assets’ risk 
  • Social: human rights - operating unethical and illegal working conditions
  • Governance: transparency & integrity - lack of appropriate board oversight and decision making structures

Saxo will put appropriate processes in place to monitor, assess and manage the potential and actual impact of ESG risks on individual funds and portfolios on an ongoing basis. In evaluating a fund or portfolio on ESG criteria, Saxo is dependent upon information and data from third parties.

As Saxo works with asset managers to construct portfolios, part of the due diligence process is to judge the ESG framework the asset manager has in place, e.g. the staff involved regarding ESG matters, engagement and portfolio ESG risks. 

Risks

The main risk is that the asset managers should have the right tools (e.g. data) in place to make the right investment decisions - e.g. excluding specific companies for a fund taking ESG into account - as this could  have an impact on investment returns. 


Last updated: 10th March 2021


Due to coronavirus controls, we are not able to meet with clients in our reception at present, unless by appointment in exceptional circumstances. We remain at your service on the phone and email details below. Thank you for your understanding.

Please expect very long waiting times on the line when calling us, we advise you to send us an email instead.

Contact Saxo

Select region

UAE
UAE

Trade responsibly
All trading carries risk. Read more. To help you understand the risks involved we have put together a series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. Read more

Saxo Bank A/S is licensed by the Danish Financial Supervisory Authority and operates in the UAE under a representative office license issued by the Central bank of the UAE.

The content and material made available on this website and the linked sites are provided by Saxo Bank A/S. It is the sole responsibility of the recipient to ascertain the terms of and comply with any local laws or regulation to which they are subject.

The UAE Representative Office of Saxo Bank A/S markets the Saxo Bank A/S trading platform and the products offered by Saxo Bank A/S.