In its day-to-day operations, Nordic Equities acts in such a way that confidence in the fund company’s activities is maintained and that the business is sound. The fund management company strives to conduct its business in an ethical manner that is characterized by good business practice, morality, consistent action, ethics, confidentiality and a fair treatment of the interests of the unit holders.
Sustainability profile
Responsible investments
A sustainable investment process
Since the interests of the unit holders are prioritized, responsible investments have been central to the investment policy for the past 20 years. When selecting our investments, we mainly consider large, well-known companies. The news flow from the companies is abundant, which facilitates the transparency of the companies. Nordic Equities closely follows the companies in order to be prepared to act when needed. We actively choose to remove companies that are not in line with our investment philosophy, which is based on the UN Global Compact, UNPRI and the OECD guidelines for multinational companies that deal with, among other things, UN conventions and international standards. The fund company has a responsibility towards its shareholders and believes that sustainable investments should be beneficial from a longer perspective. We do not believe that investing sustainable means deviating from returns. We favor companies that have sustainability issues in its focus as it is important both from a societal and investment perspective.
In 2015, the UN set an agenda for 2030, consisting of 17 global goals for a sustainable development. Nordic Equities strives to find companies that contribute to promote one or more of the goals. Therefore, in order to find sustainable future companies that contribute to a better society, we use the 17 goals as a template when selecting new companies. We have, for example, chosen health care companies that contribute to good health, construction companies that build sustainable properties, companies that purify water, companies that produce renewable energy and companies that contribute to a sustainable industry with help from new innovations. Many companies and investors focus primarily on environmental issues, which of course are of great importance, but we believe that it is important not to forget all other areas of ESG (Environmental, Social, Governmental). We do therefore also consider the management conditions of the companies, gender equality, corruption and work environment.
Ethics and moral responsibility
As investors and co-owners in our portfolio companies, we believe that we have a moral responsibility and a responsibility towards our customers. Issues as violations against human rights, corruption and sustainability are important to us. In order to contribute to a better society, we exclude companies whose main activities are covered by the following areas:
Arms, Pornography, Commercial games, Child labor, Alcohol, fossil fuels, Pollution, Tobacco and Coal
Arms
Child labor
Pollution
Pornography
Alcohol
Tobacco
Commercial games
Fossil fuels
Coal
Resources
Nordic Equities portfolios are screened twice a year in cooperation with GES international. We use a norm-based screening, based on an analysis model leaning on the principle that companies have the responsibility to comply with international standards. GES Global Ethical Standard Screening covers the UN Global Compact’s ten principles within the four standards; Human Rights, Labor Rights, Environment and Corruption. The process is based on daily media coverage related to specific international conventions and guidelines (such as the UN Global Compact, OECD Guidelines for Multinational Enterprises, human rights conventions, labor rights conventions, environmental conventions, weapons-related conventions). GES identifies possible incidents within companies, so-called violations, and Nordic Equities is informed by regular alerts by e-mail. Furthermore, an analysis follows, focusing on what has happened, if the company is responsible for the incident, what the company does to address the incident, consequences and potential actions.
Nordic Equities always take sustainability aspects reported in the analysis data into account when doing internal company analysis. Our investment committee regularly discusses sustainability issues and information within sustainability is crucial for investment decisions.
Nordic Equities is a member of Swesif, a network forum for sustainable investments.
Negative and positive screening
We exclude companies whose main business involves weapons, pornography, alcohol, tobacco, commercial games, fossil fuels and coal.
We favor companies whose main business contributes to a renewable and better society. We believe companies within the area of renewable energy and with effective solutions within the ESG area will be winners and therefore attractive investments.
Corporate governance
Nordic Equities annually send a letter to all portfolio companies, presenting its position on sustainability issues and pointing out any controversies that the company has been involved in during the year. Nordic Equities do also have a regular dialogue with the management of the portfolio companies regarding the company’s sustainability work.
Commitments
- Signatories of UNPRI, UN’s Responsible Investment Directive, since January 2016.
- Members of Swesif, Sweden’s Sustainable Investment Forum.
Please read reporting according to Swedish Investment Fund Association template
Reporting and follow up
- Annual reporting to UNPRI
- Publishing of the funds holdings in the half-and full-year report.
- Companies under guardand the funds holdingsare screened and checked twice a year by GES international.
- All new investment decisions go through the investment committee whereall participants are well aware of the company guidelines for sustainable investments.
- The fund managersare responsible for mediasurveillance, analysis and for upholding dialogue with the companies.
As an asset manager, we follow the UN’s six principles for environmental issues, social issues, corporate governance & governance (ESG).
Principle 1: We will incorporate ESG issues into our processes for investment analysis and decision making.
Principle 2: We must be active owners and incorporate ESG issues into our ownership policy and practice.
Principle 3: We shall request appropriate reporting on ESG issues from the companies in which we invest in.
Principle 4: We will work for acceptance and implementation of the principles in the investment industry.
Principle 5: We will work together to improve our efficiency by implementing the principles.
Principle 6: We shall each report our actions and progress in implementing the principles.
Global Compact
Human Rights
Companies should supportand respect the protection of international human rights;and
- Make sure that theyare not involved in human rights violations.
Labor
- Businessesareasked to maintain freedom of association and effective recognition of the right to collective bargaining;
- the elimination ofall forms of forced labor;
- abolition of child labor;and
- Abolition of discrimination in employmentand occupation.
Environment
- Companiesareasked to support the precautionary principle regarding environmental risks;
- Take initiatives to promote greater environmental responsibility;and
- Encourage the developmentand dissemination of environmentally friendly technologies.
Anti-corruption
- Companies should workagainst corruption inall its forms, including extortion and bribery.
Rapportering och uppföljning
- Annual reporting to UNPRI
- Publishing of the funds holdings in the half-and full-year report.
- Companies under guardand the funds holdingsare screened and checked twice a year by GES international.
- All new investment decisions go through the investment committee whereall participants are well aware of the company guidelines for sustainable investments.
- The fund managersare responsible for mediasurveillance, analysis and for upholding dialogue with the companies.
As an asset manager, we follow the UN’s six principles for environmental issues, social issues, corporate governance & governance (ESG).
Principle 1: We will incorporate ESG issues into our processes for investment analysis and decision making.
Principle 2: We must be active owners and incorporate ESG issues into our ownership policy and practice.
Principle 3: We shall request appropriate reporting on ESG issues from the companies in which we invest in.
Principle 4: We will work for acceptance and implementation of the principles in the investment industry.
Principle 5: We will work together to improve our efficiency by implementing the principles.
Principle 6: We shall each report our actions and progress in implementing the principles.
Global Compact
Human Rights
Companies should supportand respect the protection of international human rights;and
- Make sure that theyare not involved in human rights violations.
Labor
- Businessesareasked to maintain freedom of association and effective recognition of the right to collective bargaining;
- the elimination ofall forms of forced labor;
- abolition of child labor;and
- Abolition of discrimination in employmentand occupation.
Environment
- Companiesareasked to support the precautionary principle regarding environmental risks;
- Take initiatives to promote greater environmental responsibility;and
- Encourage the developmentand dissemination of environmentally friendly technologies.
Anti-corruption
- Companies should workagainst corruption inall its forms, including extortion and bribery.
