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Norwegian Government Pension Fund Global (Norwegian Ministry of Finance and Norges Bank Investment Management)

PRI reporting framework 2017

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You are in Direct - Fixed Income » ESG incorporation in actively managed fixed income » Implementation processes

Implementation processes

FI 04. Incorporation strategies applied

04.1. Indicate 1) Which ESG incorporation strategy and/or combination of strategies you apply to your actively managed fixed income investments; and 2) The proportion (+/- 5%) of your total actively managed fixed income investments each strategy applies to.

SSA
0 Screening alone
0 Thematic alone
0 Integration alone
0 Screening + integration strategies
0 Thematic + integration strategies
100 Screening + thematic strategies
0 All three strategies combined
0 No incorporation strategies applied
100%
Corporate (non-financial)
0 Screening alone
0 Thematic alone
0 Integration alone
0 Screening + integration strategies
0 Thematic + integration strategies
100 Screening + thematic strategies
0 All three strategies combined
0 No incorporation strategies applied
100%

04.2. Describe your reasons for choosing a particular ESG incorporation strategy and how combinations of strategies are used.

Across all fixed income investment mandates consideration must be given to economic, financial, environmental, social and corporate governance (ESG) risk factors.

Criteria for observation and exclusion have been endorsed by the Storting - the Norwegian parliament. These criteria relate to 1) specific product types and entail that the fund must not invest in companies which themselves, or through entities they control, produce weapons that violate fundamental humanitarian principles through their normal use, produce tobacco, or sell weapons or military material to certain countries. 2) if there is an unacceptable risk of conduct that is considered grossly unethical. The Executive Board of Norges Bank decides on observation and exclusion of individual companies, based on a recommendation from the Council on Ethics. Exclusions take place across all asset classes.

NBIM may also choose not to invest in certain companies or groups of companies/sectors. Such divestments take place across asset classes.

NBIM has a green bond portfolio including green bonds issued by supra-nationals,sovereigns, agencies, local authorities and treasuries.

There is a specific process within NBIM where countries are approved ahead of investments, which is implemented across all asset classes.

More information is given in the report on "Responsible Investment 2015": https://www.nbim.no/contentassets/2c3377d07c5a4c4fbd442b345e7cfd67/government-pension-fund-global---responsible-investment-2016.pdf

 

04.3. Additional information [Optional].

It follows from the mandate from the Ministry of Finance to Norges Bank that the GPFG in exceptional cases may be barred from investing in fixed income instruments issued by governments or government-linked issuers. The GPFG is not a foreign policy instrument, and it is only in exceptional cases with large-scale international sanctions or restrictive measures, that such restrictions apply to investments in government bonds.
 


FI 05. ESG issues and issuer research (Private)


FI 06. Processes to ensure analysis is robust

06.1. Indicate how you ensure that your ESG research process is robust:

06.2. Describe how your ESG information or analysis is shared among your investment team.

06.3. Additional information. [Optional]


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