ESG - At the heart of what we do
As Investment manager, Hypoteket Funds invest solely in high grade mortgages originated by Hypoteket Bolån AB. ESG for us hence will depend greatly on the values and concepts of Hypoteket as a whole.
Hypoteket is classified as a carbon neutral company, We are a small, highly digitalized firm so the carbon footprints we make are quite frankly not very big, but the ones that we still do are offset by climate compensation*.
What has a bigger environmental impact however is housing, in the form of heating and general energy consumption. This is something we are indirectly part of as a mortgage provider.
Green Mortgages has become popular as of late. It is essentially a way of classifying mortgages based on the energy efficiency of the asset behind the mortgage, i e the house or the flat. If certain criteria are met, the mortgage becomes eligible as Green, which typically comes with a rate discount as incentive.
Hypoteket aims to offer Green Mortgages in the near future. We also aim to offer financing for home owners who want to make energy saving investments in their property.
What is often somewhat overlooked in ESG, but core at Hypoteket, is the S, for Social. Hypoteket was founded in order to offer fair and transparent mortgages, where all mortgage takers who meet our criteria are offered the same rate. This is a socially just way of distributing mortgages, unlike the traditional model where large discounts are given to those who are the most profitable clients or he/she who happen to be the toughest negotiator.
We want to continue to build on this social heritage as we go forward. We want to, together with our investors, be able to offer mortgage solutions also to those who stand further from the housing market. Natural target groups would be the young and/or people with recent citizenship. We would also like to adress the mortgage market malfunction for retirees, who may have solid finances but low income.
There is plenty to do within the scope of mortgages!