We are launching Amos Value.
We are launching Amos Value. A Swedish equity fund that seeks out quality companies hidden from the front pages of business newspapers, acquired only when the…
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Sustainability
Sustainability in our management
We focus on quality. Sustainability risks are risks like any other, and companies that manage them poorly are rarely durable investments.
Our position
Exclusion as a byproduct
We look for companies with strong cash flows, sustainable margins and considered capital allocation. Companies that offload environmental costs, violate labour law or have weak governance rarely have the kind of sustainable profitability we are looking for. This means many of the worst actors are naturally filtered out in our quality analysis. Not because we are driving a sustainability agenda, but because they are not good enough companies.
- UN Global Compact
- We do not invest in companies that violate the principles of human rights, labour law, the environment and anti-corruption.
- Sector exclusions
- We exclude companies in controversial weapons, tobacco production, alcohol production and companies where fossil extraction constitutes a significant part of operations.
- Article 8 under SFDR
- We apply norm-based screening and sector exclusions under SFDR Article 8. Sustainability is not the fund's primary investment objective.
In practice
We analyse companies, not ESG ratings
How a company manages environmental risks and governance determines whether it can sustain its margins and cash flows over time. We do not filter against an ESG index. We read the company. It is one of many factors that determine whether a company meets our requirements for durable profitability.
- Company by company, industry by industry
- A mining company is not assessed the same way as a software company. We adapt which risks are relevant to the company we are analysing.
- Ongoing monitoring
- If an existing holding changes negatively we evaluate whether it still meets our requirements.
Our conviction
Quality and sustainability go together
Well-managed companies with proven profitability tend to also be sustainable companies. Taking company analysis seriously leads there, without it needing to be a stated objective.
Governance reveals the company
How a company treats its employees, manages environmental risks and runs its board is a mirror of how it is managed overall. We see this as part of company analysis, not as an ESG filter.
The company, not the report
Sustainability reports describe how a company wants to be perceived. Company analysis reveals how it actually works. We do the latter.
Analysis over standardised ratings
ESG ratings can be misleading and do not replace company analysis. We assess each company based on its industry, competitive conditions and actual risks.
What we do not own
Exclusion policy
In addition to the natural filtering that occurs in our quality analysis, there are companies we do not want to own at any price. They do not fit within our strategy.
Controversial weapons
Cluster munitions, anti-personnel mines and chemical, biological and nuclear weapons.
Tobacco production
Companies whose material operations involve the production or distribution of tobacco.
Alcohol production
Companies whose material operations involve the production of alcohol.
Fossil fuel extraction
Companies where fossil fuel extraction constitutes a material part of revenue.
UN Global Compact violations
Companies that demonstrably violate the UN Global Compact principles.
Common questions about sustainability
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