Storebrands policy for enagement and active ownership states that resources will be channelled and prioritised to the following companies
- companies where Storebrand's equity share is over 3% in Norway and 0.7% in Sweden
- companies involved in controversial cases, including governance, environmental and social issues
- companies where the equity share of indivdual funds is over 5%
Storebrand will mainly address the following topics: incentive structures, capital utilisation, board composition, board member ownership, corruption and economic crime, human rights and international humanitarian law, severe climate- and environmental degradation.
Activities will be prioritised with respect to significance of ownership, risk and/or relevance to value creation, including positive impact. Activities will normally be decided and conducted by responsible portfolio managers (equity and fixed income) and/or ESG analyst. The Engagement Committee oversees framework and policies in this area in addition to supervise, select and prioritize all engagement cases .There is a special focus on theme proactive engagement. It is also a place where active ownership/engagement best practice is discussed. The commitee includes financial analysts as well as ESG analysts and the head of Storebrand Asset Management.
Policies/procedures specific to ESG analysts: 3500 companies are monitored by a sustaniability data provider to detect potential violations with the Storebrand Standard. The data provider is also in contact with these companies to include all company measures and corporate behaviour changes regarding all potential violations of the Storebrand standard. Potential violaiton cases where posibilities for changed corporate behaviour are detected are sent by the ESG team to the Engagement Committee for review. The ESG team will also send for review potential theme engagement cases that are detected as opporuntity or risk for an industry during our biannual sustainbility rating analysis of all companies in our investment universe.
Prior to each engagement process, specific goals are established for the engagement process, in order to ensure clear communication with investees as well as ease the measurement of engagement success. ESG analysts record the level of engagement success in each engagement process. There are four steps, where the fourth level is aligned with the UN PRI definition of success: "The measures taken were all or mostly completed after Storebrand contacted the company". Hence, we can assume our engagement efforts have contributed to the improvement, although it is rarely possible to determine with certainty Storebrand's particular effect on the outcome.
In instances where the engagement process does not lead to the required improvement in reactive engagement porcesses, Storebrand may exclude a company from investments (Storebrand Standard). In case of exclusion, formal reporting procedures are in place to inform both company, portfolio managers, as well as in-house compliance officers.
Excluded companies are reviewed regularly (every six months), in order to request information on any improvements and/orseek to establish a dialogue.