We need the metals

AuAg manages funds focused on metals, mining companies and green technology. The holdings range from precious metals such as gold and silver to strategic and critical metals, as well as companies developing solar cells, hydrogen, recycling and energy storage for the energy transition. AuAg is convinced that precious metals serve as long-term stores of value, and that metals such as lithium, copper, and rare earth elements – together with the technologies that use them – are essential to an electrified society.

AuAg considers sustainability based on the UN's definition of sustainable development: meeting present needs without compromising the ability of future generations to meet their needs. For the mining industry, that definition is both a challenge and a driving force. The metals in the ground are finite, but they are also a prerequisite for the transition that future generations depend on. At the same time, they are not consumed like fossil fuels. Many metals can be recycled and reused, and can thereby enable a future circular economy.

The mining industry leaves an environmental and social footprint, from energy and water consumption and land impact to working conditions and relationships with local communities. This is a challenge, but also an opportunity: capital that sets requirements drives improvement. Companies that improve their sustainability performance contribute to better outcomes for the environment and society, while also being able to supply metals that are essential for an electrified economy. Over time, this can attract capital and create returns for unit holders.

AuAg continuously develops its sustainability work. Sustainability is an area in constant change, and AuAg meets it with openness: AuAg works continuously to deepen our knowledge, be transparent and make well-founded trade-offs in our investment decisions.

Before AuAg invests in a company, it is analysed against the respective fund's sustainability requirements. Investment decisions are made based on an overall evaluation against the environmental and social characteristics that each individual fund promotes.

As part of the analysis, AuAg considers internationally recognised norms for all funds: the UN Global Compact, the OECD Guidelines and the UN Guiding Principles on Business and Human Rights. Compliance with these norms is something AuAg continuously examines and follow up on in our holdings.

Principal adverse impacts (PAI)

Principal adverse impacts (PAI) describe the negative effects that investment decisions can have on sustainability factors, such as the environment, social issues, human rights and corruption. AuAg considers certain PAI indicators at the product level, in accordance with each fund's sustainability-related disclosures, but does not yet apply this systematically for the organisation as a whole. AuAg is working to build a data infrastructure as the basis for a PAI reporting framework, with the aim of implementing this no later than spring 2028.