KLP includes a side letter for all private equity investments outlining our guidelines on responsible investment, for example, that KLP does not invest in companies that produce tobacco or that obtain 30 percent or more of their revenues from coal-based activities. As the investments are blind, KLP is not aware of which companies will be a part of the portfolio at the time that the external manager is selected. The side letter provides therefore that the fund manager will notify KLP in the event that any investment would violate "Guidelines for KLP as a responsible investor" and that KLP retains the right to be treated as an excused investor with respect to that investment.
KLP includes a supplier decleration letter for external managers for listed equity, fixed income and infrastructure, however they are not obliged to sign and some have chosen not to. In those cases KLP has to asess the external managers investment policy to make sure it is aligned with KLPs.