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PRI reporting framework 2020

You are in Direct - Listed Equity Incorporation » ESG incorporation in actively managed listed equities » Implementation processes

Implementation processes

LEI 01. Percentage of each incorporation strategy

01.1. Indicate which ESG incorporation strategy and/or combination of strategies you apply to your actively managed listed equities; and the breakdown of your actively managed listed equities by strategy or combination of strategies.

ESG incorporation strategy (select all that apply)

Percentage of active listed equity to which the strategy is applied — you may estimate +/- 5%
10 %
Percentage of active listed equity to which the strategy is applied — you may estimate +/- 5%
90 %
Total actively managed listed equities 200%

01.2. Describe your organisation’s approach to ESG incorporation and the reasons for choosing the particular strategy/strategies.

Gjensidigestiftelsen screens all the underlying holdings in MSCI’s ESG Manager portal. We have developed a factor-list based on our responsible investment strategy and what we find to be our highest priority when evaluating funds’ ESG performance. This factor-list is used in every screen so that we can track historical performance and if the funds we are invested in are making progress. When new trends and parameters develop, these are added to the factor-list so that we can start the process of measuring these whilst keeping the existing framework of the screen.

We find that a screening approach allows us to quickly filter down our many investments and look more closely at the companies, and the funds these investments are in, that receives a critic worthy score. Using the screening tools also allow us to view many aspects of the underlying holdings and this makes it easier for us to classify the companies in our portfolio in more detail. The classifications help the investment team to adjust their focus as this gives us a clearer view of where we are more likely to find ESG concerns in the future as well as the possibility of incidents. The choice of ESG integration is financially motivated. As a long term asset owner, we believe that sustainable value creation will yield superior results and minimize downside risk.

Screening all underlying holdings also gives us the opportunity to have detailed conversations with fund managers as we are able to bring specific business cases up in calls and meetings. Understanding how fund managers handle these specific cases helps us better understand their ESG approach, how this works off paper and how this align with Gjensidigestiftelsens responsible investment strategy.

In addition to screening on ESG performance, Gjensidigestiftelsen has an overall integration investment strategy. Although we don’t have an exclusion list and have not excluded companies or funds solely for ESG reasons, there are certain sectors and involvements the foundation would like to avoid. Funds involved in, heavily invested in such sectors or with investments in a number of companies with involvements viewed as unsustainable and/or unethical, could eventually find themselves to be removed from our investment portfolio. Our criteria are based on several known international standards and guidelines, as for example the United Nations Global Compact, OECD Guidelines for Multinational Enterprises and United Nations Guiding Principles on Business and Human Rights as well as the United Nations Principles for Responsible Investment. Gjensidigestiftelsens mission is also reflected heavily.

01.3. If assets are managed using a combination of ESG incorporation strategies, briefly describe how these combinations are used. [Optional]

LEI 02. Type of ESG information used in investment decision (Private)

LEI 03. Information from engagement and/or voting used in investment decision-making (Private)

(A) Implementation: Screening

LEI 04. Types of screening applied

04.1. Indicate and describe the type of screening you apply to your internally managed active listed equities.

Type of screening

Screened by

          Our own set of norms derived from standards and guidelines, Norwegian law as well as Gjensidigestiftelsen's mission.


Gjensidigestiftelsen has developed its own set of screening criteria/ factor list, that we use for screening all underlying holdings of the active listed equity funds we are invested in. The criteria are developed based on several known international standards and guidelines. As trends and factors available advance in our screening tool, we update our screening routine. If we find that there are holdings that that doesn’t comply with our requirements we take action by reaching out to the funds and try to influence the managers to reach out to the company and make a change. If there are multiple cases of severe malpractice that the fund managers refuse to collaborate on, the fund might be removed from our investment portfolio. However, in general we do believe that collaborations with fund managers will make a greater impact than to simply exclude/ disinvest and therefor this is always our first order of business. On the other hand, exclusion might be inevitable in some cases.

04.2. Describe how you notify clients and/or beneficiaries when changes are made to your screening criteria.

Changes to our screening criteria that affects our investment strategy must be approved by the board. Changes to our criteria that simply offer a minor change in factors that we screen for is merely changed by the investment team and the individuals responsible for the biannually screening of the portfolio. For larger changes, that still doesn’t affect the investment strategy, there might be an open discussion in the foundation’s investment committee. The investment committee, the CIO and the rest of the investment team will always be informed of all changes made to the criteria immediately. The CIO has the possibility to override changes being made, or to request changes that are not already considered. However, if the CIO’s suggestions, or other proposals, trigger a change in the investment strategy, this must go through the board before taking effect. The board will be notified of changes that doesn’t require a change in the investment strategy when they are presented with the biannually results of the screen.

Managers of the funds we are invested in will be notify of changes in criteria as soon as they take effect. Gjensidigestiftelsen likes to take these changes up in a meeting or a call because this allows the foundation to explain the rational and consequences of the changes more easily.

LEI 05. Processes to ensure screening is based on robust analysis

05.1. Indicate which processes your organisation uses to ensure ESG screening is based on robust analysis.

05.2. Indicate the proportion of your actively managed listed equity portfolio that is subject to comprehensive ESG research as part your ESG screening strategy.

05.3. Indicate how frequently third party ESG ratings are updated for screening purposes.

05.5. Additional information. [Optional]

The complex third party ESG ratings are updated roughly on a yearly basis. However, if there are any major changes in certain sectors, if sudden news breaks or if there are any other major event that might influence the ratings, they follow this and make updates accordingly. This is updated in our system real time through direct feed.

LEI 06. Processes to ensure fund criteria are not breached (Private)

(C) Implementation: Integration of ESG factors

LEI 08. Review ESG issues while researching companies/sectors

08.1. Indicate the proportion of actively managed listed equity portfolios where E, S and G factors are systematically researched as part of your investment analysis.

ESG issues

Proportion impacted by analysis




Corporate Governance

Corporate Governance

08.2. Additional information. [Optional]

LEI 09. Processes to ensure integration is based on robust analysis

09.1. Indicate which processes your organisation uses to ensure ESG integration is based on robust analysis.

09.2. Indicate the proportion of your actively managed listed equity portfolio that is subject to comprehensive ESG research as part your integration strategy.

09.3. Indicate how frequently third party ESG ratings that inform your ESG integration strategy are updated.

09.5. Describe how ESG information is held and used by your portfolio managers.

09.6. Additional information. [Optional]

LEI 10. Aspects of analysis ESG information is integrated into (Private)