Since we in 2018 prepared a new strategy, we have been on a journey towards implementing ESG inside all our processes, products and advisory. In late 2018 a ESG Integration Council was established.
The ESG Integration Council is a sub-committee to our Sustainable Investment Committee with the mandate to a) Guide ESG strategy implementation, b) Evaluate ESG risk & dilemmas, c) Review and endorse ESG investment restrictions, d) Decide on collaborative engagements and e) Discuss and decide on other topics with relevance across investment management organization.
The ESG Integration Council has been created to support ESG integration into the core of our investment processes [rather than having it as a parallel process]. As ‘ESG Inside’ is about making better-informed investment decisions, addressing issues of risk and dilemmas alongside opportunities, and influencing portfolio companies through dialogue, the approach and decisions taken needs to be well anchored and strongly supported by the investment organization.
The process was finalized and approved in 2018, and the council had their first meeting in january 2019.
The council drives a "ESG Special Cases" process, where actions are discussed in relation to sectors, countries and single companies. The outcome can be monitor case, halt new investments, divest or impose investment restrictions. The actions taken can be close case, single engagement, collaborative engagement, voting or other active ownership initiatives.