Investment manager selection
We require new managers to incorporate ESG factors into their investment process in all investment decisions. We'd like our managers to have a process for engagement with companies on ESG topics, we also like them to vote on our behalf. More specifically we don't want our managers to invest in companies that violates UN Global Compact, companies that are classified as controversial weapons, nuclear weapons or companies with a high share of profits coming from exploration or usage of coal.
In addition, investments that contribute to global sustainability goals are given extra credit.
At least once a year we follow-up the managers investment process related to ESG. We'd like our managers to increase the ambition level every year. We also look through the fund holdings to make sure they don't own companies on our exclusion list, it this is the case it's a reason to initiate a dialogue with the manager. If a manager doesn’t meet our requirements we give them 12 months to improve before we divest.