This report shows public data only. Is this your organisation? If so, login here to view your full report.

KLP

PRI reporting framework 2019

Export Public Responses
Pdf-img

You are in Direct - Fixed Income » ESG incorporation in actively managed fixed income » Implementation processes

Implementation processes

FI 01. Incorporation strategies applied

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
100 Screening alone
0 Thematic alone
0 Integration alone
0 Screening + integration strategies
0 Thematic + integration strategies
0 Screening + thematic strategies
0 All three strategies combined
0 No incorporation strategies applied
100%
Corporate (financial)
100 Screening alone
0 Thematic alone
0 Integration alone
0 Screening + integration strategies
0 Thematic + integration strategies
0 Screening + thematic strategies
0 All three strategies combined
0 No incorporation strategies applied
100%
Corporate (non-financial)
100 Screening alone
0 Thematic alone
0 Integration alone
0 Screening + integration strategies
0 Thematic + integration strategies
0 Screening + thematic strategies
0 All three strategies combined
0 No incorporation strategies applied
100%
Securitised
100 Screening alone
0 Thematic alone
0 Integration alone
0 Screening + integration strategies
0 Thematic + integration strategies
0 Screening + thematic strategies
0 All three strategies combined
0 No incorporation strategies applied
100%

01.2. Describe your reasons for choosing a particular ESG incorporation strategy and how combinations of strategies are used.

As our ESG policy is primarily norm-based, it is important to screen 100% of our investments. We engage with issuers when an ESG controversy arises and ESG factors are considered when deciding on a line of credit. For the active fixed income portfolios covering the Norwegian market there is a contniues monotoring of the issuers. 

KLP has some work conserning integration strategies as well, however 100 % screening is still most important.

 

01.3. Additional information [Optional].


FI 02. ESG issues and issuer research

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

Select all that apply
SSA
Corporate (financial)
Corporate (non-financial)
Securitised
Environmental data
Social data
Governance data

02.2. 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  

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

KLP uses external service providers for information on environmental, social and governance (bribery and anti-corruption) metrics. These are screening-based. KLP conducts in-house analysis primarily on Norwegian issuers, but also on foreign issuers in the case of serious violations.

Government bonds: KLP shall not invest in bonds issued by countries where the state or government officials are the object of UN or EU economic sanctions to which Norway adheres. KLP shall not invest in the lowest-ranked countries in the World Bank's Worldwide Governance Indicators (WGI). Excluding a government bond from the investment universe does not normally require the exclusion of other forms of investment in the same country.

KLP shall also monitor developments in companies subject to UN and EU sanctions to which Norway adheres, and consider freezing purchases of, or divesting, the relevant companies' securities.

 

 

02.4. Additional information. [Optional]

The financial department in KLP define the limits for credit-investments. Credit limits are approved by KLP's credit committee. The asset management company, KLP Kapitalforvaltning, follow these limits. When "private placements" are made, ESG issues are part of the assessments taken.


FI 03. Processes to ensure analysis is robust

03.1. Indicate how you ensure that your ESG research process is robust:

03.2. Describe how your ESG information or analysis is shared among your investment team.

          Companies where ESG issues have been identified and should be considered before investment in the company are flagged for the PMs.
        

03.3. Additional information. [Optional]

Issuers are given the opportunity to comment on pending exclusion decisions. KLP conducts a benchmarking process of different ESG providers before entering any cooperation agreement. We use several different service providers, such that we can compare the quality of analysis on a regular basis. KLP also engages in in-house analysis and dialogue with companies, which helps us to evaluate the quality of ESG providers.


Top