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Valtion Eläkerahasto

PRI reporting framework 2017

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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
100 Screening + integration strategies
0 Thematic + integration strategies
0 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.

VER’s ESG criteria

In its investment activities, VER focuses on ESG criteria that are consistent with its investment objectives and in respect of which VER is in a position to implement and monitor the criteria, given the resources available. Key criteria:

1. Respect for the PRI and promotion of ESG goals;

2. Respect for universal international standards;

3. Transparency of ESG issues in all asset classes.

Implementation of responsible investing

The methods used in responsible investing may vary in terms of the adopted approach because there is no universally applicable definition of ESG in the investment industry; instead, each player perceives it differently placing the emphasis on different priorities. The methods used by VER to pursue responsible investing are governed by the following considerations with due allowance for the asset class involved: 

1. Integration of ESG issues in the decision-making process;

2. Direct monitoring of ESG performance – active ownership;

3. Indirect monitoring of ESG performance – passive ownership;

4. Active participation in meetings of shareholders;

5. Exercise of influence;

6. Compliance monitoring;

7. Exits

 

04.3. Additional information [Optional].


FI 05. ESG issues and issuer research

05.1. Indicate which ESG factors you systematically research as part of your analysis on issuers.

Select all that apply
SSA
Environmental data
Social data
Governance data

05.2. Indicate what format your ESG information comes in and where you typically source it

Indicate who provides this information  

Indicate who provides this information  

Indicate who provides this information  

Indicate who provides this information  

Indicate who provides this information  

05.3. Provide a brief description of the ESG information used, highlighting any differences in sources of information across your ESG incorporation strategies.

Basically, the principles of responsible investing apply to VER’s entire investment portfolio. As described, the opportunities for compliance monitoring and influencing the behaviour of portfolio companies vary according to asset class and may be relatively limited particularly in the case of indirect investments.

VER’s portfolio managers document the ESG issues related to investment decisions and monitoring in accordance with standing instructions.[1]The ESG compliance of VER’s direct investments is assessed annually by an independent party with regard to norm violations and production of controversial weapons.[2] 

VER has retained the services of a third-party  to determine the combined carbon footprint of all directly held portfolio companies.

[1]More detailed guidelines are issued by VER’s Management Team.

[2] Global Compact and Ottawa Landmine Convention.

05.4. Additional information. [Optional]


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.

          Key criteria: Respect for the PRI and promotion of ESG goals,  Respect for universal international standards; Transparency of ESG issues in all asset classes.
        

06.3. Additional information. [Optional]


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