This type of screening intends to ensure that the investors do not hold assets in companies that are in breach of international principles as well as ensuring that no funds are invested in controversial weapons (cluster munitions and anti-personel mines) or certain aspects of nuclear arms production. In addition, funds that exclude selected controversial sectors such as alcohol, tobacco, gambling, fossil fuels and coal are screened to ensure the applicable exclusions are in place.
We integrate environmental, social and governance (ESG) considerations in our investment practices, as we believe that management of environmental and social risks and well-functioning corporate governance is a precondition for an optimization of the risk-adjusted return. The ESG integration process took place in 2016 through biannually meetings between the RI team and all portfolio management teams in all actively managed strategies. ESG risks were highlighted and potential outliers in terms of low ESG scores were discussed.