SEB launches ambitious new ESG evaluation approach

SEB, a leading Nordic corporate bank, has launched a new ESG assessment methodology that quantifies how environmental, social and governance (ESG) factors affect companies’ financial performance, with universally positive early feedback from institutional investor clients.

SEB Research’s ESG Assessment Methodology (SEAM) is a novel value-centric approach to ESG, analysing and quantifying ESG factors that will have a material impact on companies’ financial performance. The method has been developed in response to clients’ desire to gain insight into how sustainability factors affect the investment conditions for the companies that SEB analyses.

The analyses are performed individually at company level. In addition to valuation and responsibility analyses, the framework also encompasses assessment of a company’s performance with respect to the climate impact thresholds that are laid out in the EU taxonomy. Results are entirely integrated in SEB’s equity analyses, accessible for all clients that purchase Equity Research’s analysis service.

At present, SEAM analyses have been conducted and published for more than 50 companies covered by SEB’s Equity Research team, with an expectation of completing analyses on half of the remaining companies covered by year end, and full completion of the task before midsummer 2021.

Martin Nilsson, Head of SEB Equities, says: “From what we can judge, SEAM is a considerably more ambitious, systematic and forward-looking analysis than what has been offered in the market to date. We have received an overwhelmingly positive response from our clients, who appreciate the approach’s stringency and objectivity, and that it provides new insights to inform the challenging task of ESG integration into the investment decision-making process.”

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