Negative and Norm based screening
The Storebrand Standard applies to all internally managed funds and portfolios, including all Fixed Income investments, and covers:
1) Product related exclusions: controversial weapons (landmines, cluster munitions, nuclear weapons, chemical/biological weapons) and tobacco
2) Controversial issues: human rights and international humanitarian law, corruption and economic crime, environmental degradation
3) Sector specific exclusions: lowest performing companies in high risk industries + climate related (companies with over 30% of revenues from coal, oil sand companies, palm oil companies causing deforestation).
As of Q4 2016 178 companies were excluded.
Positive/Best in Class screening
The Storebrand Sustainability rating covering 2500 companies also includes fixed income funds and portfolios. Ratings are on a 1-100 scale and consist of companies ESG practice, financial robustness and positioning for global sustainability trends. Analyses leading to the rating are sector based. Some types of bonds (Norwegian regional banks, Swedish Covered Bonds and Bonds issued by Norwegian/Swedish communes are given a group score based on ratings from the Financial sector.
On the basis of this sustainability rating, fixed income funds are rated on a scale of 1-10.