Exclusion criteria

Lannebo’s sustainability work is based on active engagement and responsible ownership in the companies where Lannebo’s funds have significant ownership positions. Concurrently, Lannebo strives to mitigate the funds’ exposure to sectors with substantial sustainability risks.

Risk information

Past performance is no guarantee of future returns. The money you invest in a fund can both increase and decrease in value and it is not certain that you will get back the full amount invested.

Sectors that Lannebo excludes

Adopting an exclusion strategy represents a potent means to steer companies toward a more sustainable trajectory. By setting explicit exclusion criteria, companies are incentivized to orient their operations in a sustainable direction. Lannebo views exclusion as an integral component of proactive sustainability efforts. However, to effectively reduce sustainability risks and promote long-term value creation, exclusion must be combined with responsible active ownership. We consider that collectively this is the clearest and most effective way for responsible investors to address sustainability and we call this the Lannebo Model.

Sectors influenced by Lannebo’s expanded exclusion criteria encompass tobacco, cannabis, alcohol, gambling, pornography, military contracting weapons, controversial weapons, and fossil fuels. These criteria hinge on revenue percentage thresholds tied to these industries.

The application of thresholds serves to ensure that the exclusion criteria meet their intended objectives and align with industry standards. These thresholds are designed to prohibit investments in companies deeply entrenched in the aforementioned sectors. Simultaneously, a degree of discretion is applied to companies with negligible involvement in these sectors. Otherwise, the criteria risk becoming overly broad, obscuring their purpose and failing to induce clear incentives for change.

Given the rapidly evolving landscape of asset managers’ sustainability initiatives, the most effective strategies today may shift over time. Accordingly, Lannebo continuously tracks advancements with the aim of remaining at the forefront.

Thresholds for exclusion criteria


Production = 0%
Distribution = 5%

  • Refers to cigarettes, snus, cigars, pipe- and chewing tobacco, and e-cigarettes.
  • Distribution refers to companies deriving over five percent of total revenue from tobacco sales.
  • Does not include related products and services, such as paper and cardboard manufacturing.


Production = 5%
Distribution = 5%

  • Refers to cannabis for recreational cannabis and not medical cannabis within the context of prescription drugs.
  • Distribution refers to companies deriving over five percent of total revenue from recreational cannabis sales.
  • Does not include related products and services, like plastic components or packaging materials.


Production = 5%
Distribution = 5%

  • Refers to alcoholic beverages.
  • Distribution refers to companies deriving over five percent of total revenue from alcoholic beverage sales. Certain hotel chains are therefore excluded when their alcoholic beverage sales exceed this threshold.
  • Does not include related products and services, such as packaging and glass bottles.


Production = 5%
Distribution = 5%

  • Refers to gambling and betting operations, including operators and platforms.
  • Additionally refers to specialized equipment and tailored products and services. This incorporates manufacturers of slot machines, roulette wheels, developers of online casino.
  • Does not include video game companies.


Production = 0%
Distribution = 5%

  • Refers to content depicting explicit sexual situations and activities in a nude and provocative manner.
  • Distribution applies to companies owning and operating cable, satellite, and internet channels featuring pornographic content.
  • Does not include telecommunication and internet operators or hotels.

Military Contracting Weapons

Production = 5%
Distribution = 5%

  • Refers to manufacturing of military weapons.
  • Additionally refers to tailored products and services designed to support military weapons.
  • Does not include non-weapon related products and services.

Controversial Weapons

Production = 0%
Distribution = 0%

  • Refers to weapons with a disproportionate and/or indiscriminate impact on citizens and society, including cluster munitions, anti-personnel mines, chemical and biological weapons, nuclear weapons, as well as arms composed of white phosphorus or depleted uranium.

Fossil Fuels

Thermal coal = 5%

  • Refers to extraction/production as well as electricity generation through thermal coal combustion.

Oil and gas = 5%

  • Refers to exploration, production, and refining.
  • Refers additionally to ‘shale energy’ and Arctic oil and gas exploration.
  • Does not include activities related to transport, storage or supporting products and services.

Oil sands = 5%

  • Refers to extraction.

International Conventions and Sanction

  • Lannebo does not invest in companies systematically and significantly breach international conventions or are subject to international sanctions.


For further information contact Maria Nordqvist, Senior Sustainability Expert at Lannebo.

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Maria Nordqvist

Head of Sustainability
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