Nykredit demands that all external managed funds are in full compliance with our investment policy.
When Nykredit selects a manager the shortlist of potential candidates are screened as part of the due diligence process. The screening includes due diligence with the managers policy, team and processes. Nykredit will also do an ESG screen the existing investments. Whether or not the manager is signatory to UNPRI is part of the process.
ESG is part of the eventual appointment of the manager. When appointing a manager the Nykredit demands right to exclude investments or be excluded from investments if they conflict with our policy. If the manager is not already a signatory to the UNPRI Nykredit expects to be recognized as a signatory and expect the investment process to be in line with the principles.
Nykredit monitors all investments closely. All listed investments are screened on a quarterly basis. The screening is both against norms breaches as well as ESG-rating the portfolio and its companies. The results are shared with the managers and forms the basis of the ongoing dialogue with the manager. Once or twice a year Nykredit will meet face to face with the manager and discuss the ESG-performance of the fund as well as the development of new processes.
Nykredit will also share experience with our own engagements as well as active ownership with the managers.