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KLP

PRI reporting framework 2019

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Outputs and outcomes

LEA 09. Number of companies engaged with, intensity of engagement and effort

Indicate the proportion of companies from your listed equities portfolio with which your organisation engaged with during the reporting year.
We did not complete any engagements in the reporting year.

Number of companies engaged

(avoid double counting, see explanatory notes)

Proportion of companies engaged with, out of total listed equities portfolio

Individual / Internal staff engagements

48
1

Collaborative engagements

75
2

Service provider engagements

108
2

09.2. Indicate the proportion breakdown of engagements conducted within the reporting year by the number of interactions (including interactions made on your behalf)

No. of interactions with a company
% of engagements
One interaction
2 to 3 interactions
More than 3 interactions
Total
100%

09.3. Indicate the percentage of your collaborative engagements for which you were a leading organisation during the reporting year.

Type of engagement

% Leading role

  Collaborative engagements

09.4. Indicate the percentage of your service provider engagements that you had some involvement in during the reporting year.

Type of engagement

% of engagements with some involvement
  Service provider engagements

09.5. Additional information. [Optional]

The above figures are per unique issuer. In many instances we have had several mettings with companies on different topics. There is significant overlap in the types of engagement we carried out. We have therefore reported according to the main type (e.g. for a company that we met with directly, but to whom we also signed a letter as part of a collaborative engagement). The statistics on service provider engagement are for all companies the service provider engaged with in which KLP had holdings, regardless of KLP's level of involvement. 

The percentage statistics are based on approximate equity holdings of 6000 unique issuers by the end of 2018.


LEA 10. Engagement methods

10.1. Indicate which of the following your engagement involved.

10.2. Additional information. [Optional]

It depends on the nature of the engagement which level we target (board, senior management, specialist). It can also be an escalation strategy might also be to raise the topic to the board level. 


LEA 11. Examples of ESG engagements

11.1. Provide examples of the engagements that your organisation or your service provider carried out during the reporting year.

ESG Topic
Human rights|Company leadership issues|Pollution|Labour practices and supply chain management
Conducted by
Objectives

KLP used data on ships dismantled worldwide during the previous year and traced companies in KLP's holdings to the registered, beneficial and commercial owners of ships sent to beaching in Bangladesh, India, and/or Pakistan. KLP then wrote letters to each of these companies and requested a meeting to discuss their policy and strategy for responsible shipbreaking. In the case of a Norwegian-listed company, KLP voted against the company's board candidates at the annual general meeting due to their failure to ensure the company had a robust policy for responsible shipbreaking.

Scope and Process

We sent letters to companies in our portfolios that sent ships for scrapping in Bangladesh, India or Pakistan in 2017. And engaged  in dialogue with a number of them that responded. 

KLP drew increased focus to the issue and negative attention to companies that used the beaching method. KLP also garnered support from additional investors. Given current market conditions, however, the number of ships sent to beaching has increased overall.

Outcomes
ESG Topic
Climate Change
Conducted by
Objectives

KLP is part of the Investor Decarbonisation Initiative an initiative that engages with companies to use more renewable energy and become more energy efficient. 

Scope and Process

Letter has been sent to over 30 companies, and letter have been followed up with company calls in some cases. 

Outcomes
ESG Topic
Executive Remuneration|Company leadership issues|Shareholder rights|Other governance
Conducted by
Objectives

KLP has several meetings with companies in the AGM season to discuss their policies for remuneration, board composition, bundling and other themes related to the AGM. How KLP voted and why is avaliable here: https://vds.issgovernance.com/vds/#/MzU3MA==/

In 2018 we saw a lot of changes made in the norwegian market based on feedback before an AGM or after. The changes related to the bundling of board members and criteras for bonus. 

Scope and Process

KLP vote for all companies. In the norwegian market we follow the voting more closely and has consistently argued aginst bundling and unclear bonus criterias. 

Outcomes
ESG Topic
Climate Change|Sustainability reporting
Conducted by
Objectives

KLP together with other institutional investor collaborated on engagement with norwegian companies on TCFD reporting. 

Scope and Process

Face-to-face meeting with companies in Norway. 

Outcomes
ESG Topic
Labour practices and supply chain management|Deforestation
Conducted by
Objectives

KLP participated on an engagment trip to Indonesia to engage with asian banks on their lending to palm oil companies. 

Scope and Process

KLP is part of the PRI led investor collaboration on palm oil. 

Outcomes

11.2. Additional information. [Optional]


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