Product and activity based exclusion. We exclude companies in certain clearly defined business segments from our direct investments. We do not invest in manufacturers of weapons prohibited by international treaties, including nuclear, biological and chemical weapons, cluster munitions and anti-personnel mines. We do not invest in producers of tobacco or producers of cannabis intended for recreational use either. We use external experts for identifying the companies that fall within the above categories. Based on our own analysis, we have excluded mining and power companies whose business is strongly coal-based. We exclude mining companies if coal used for energy production accounts for more than 20 % of their turnover. In the case of electricity companies, we have first calculated the coal-intensity of their electricity production and then more carefully examined the source of the emissions of the most coal-intensive companies.
When it comes to companies' ESG related practice and performance, exclusion can be made if there are serious problems in corporate practice.