Nordea Asset Management (NAM) has reviewed the names of its sustainable funds in line with new guidelines from the European Securities and Markets Authority (ESMA).
The group has added or kept ‘Sustainable’ in the names of 17 Nordea 1 SICAV funds following the review.
NAM said all Nordea 1 sustainable products commit to a minimum of 50% allocation to sustainable investments and adhere to Paris-Aligned Benchmark exclusions.
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The new ESMA guidelines categorise ESG-related terms into six distinct groups – Sustainability, Impact, Environmental, Transition, Social, and Governance – and require funds using these terms to meet strict criteria. Currently, NAM offers 20 Nordea 1 SICAV funds that meet ESMA’s criteria as ‘Sustainable’.
Within this group, NAM’s flagship ESG STARS equity and fixed income range, which launched its first solution in 2011, fully aligns with ESMA’s guidelines. Therefore, all 13 products in this range will have ‘Sustainable’ added to their name from next month.
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Additionally, NAM offers a broad range of funds aligned with other ESMA categories, such as the Nordea 1 – Global Climate Transition Engagement fund (renamed from the Global Climate Engagement fund), which is celebrating its third anniversary in April 2025, and the Nordea 1 – European High Yield Sustainable Stars Bond fund (renamed from the European High Yield Stars Bond fund), which recently surpassed €1.5bn in AUM.
Nils Bolmstrand (pictured), CEO of Nordea Asset Management, said: “We see a lot of movement in the responsible investment space right now, with several players reconsidering their commitments to ESG. Our dedication to sustainability has always been at the heart of Nordea Asset Management’s mission.
“Our alignment with ESMA’s new guidelines underscores our ongoing dedication to delivering clear, transparent, and effective RI solutions that meet the evolving needs of our clients.”
Morningstar Sustainalytics has previously warned that as many as 1,600 funds may breach the new ESMA regulations and have to change their names or divest holdings to comply.