OUR SHAREHOLDER ENGAGEMENT CAN BE DESCRIBED BASED ON THREE ASPECTS
4.1.1 ONGOING EFFORTS:
We engage in ongoing dialogue with a large number of companies traded on Nordic stock exchanges. The topics include financial matters, shareholder dialogues and sustainability. We strongly believe that the sustainability analysis must be integrated with the financial analysis to be value-creating in the truest sense. This work is ongoing as a natural and integrated aspect of the traditional fund manager role, where we estimate the company’s potential for future growth and profitability. By adding an assessment of the extent to which sustainability strengthens or weakens the company’s circumstances, we increase our understanding and thus the reliability of our forecasts.
To delve deeper into the issues, we hold quarterly internal sustainability seminars at which we compare our company analysis to that of an external service provider (Sustainalytics) to deepen our expertise. Sustainalytics evaluates corporate sustainability programmes and monitors current controversies and problems. We also use Sustainalytic’s research to discover which companies are at higher risk (low scores in relevant areas) or have potential to improve their sustainability reporting. Based on that information, we can identify investment candidates and prioritise future shareholder engagement.
All holdings in the funds and their relevant benchmarks are screened twice a year to ensure compliance with our limits and restrictions. The screening gives us a list of companies that are violating international norms and conventions, as well as companies affected by our established limits at the fund level.