ESG is an integrated part of the Storebrand/SPP manager selection process. The process includes qualitative and quantitative measures and assessments.
Quantitative measures include our proprietary ESG rating which covers E, S and G considerations on stock and portfolio level. We also complement internal ratings with data from our external data providers. The quantitative measures will include considerations of the current and historical portfolio characteristics, but also how well the portfolios are positioned in terms of relevant future sustainability trends.
We also rate our external funds/managers using a wide range of criteria. The main areas in this qualitative assessment are as following:
The fund mandate with respect to ESG considerations
Attitudes expressed, implemented policies and dedicated ESG resources in the fund organization
Integration of ESG in the investment process
Portfolio manager/team knowledge and attitudes
Previous experience with the manager in question
When monitoring the external managers selected, we also use a combination of quantitative and qualitative measures. Changes in overall ratings and portfolio content is of course important, as well as ongoing periodical fund reviews with the managers where we discuss portfolio positions from an ESG perspective. Working together with our external managers to influence the portfolio companies in a better direction is also important for us, as this gives increased leverage to our internal impact potential.