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Norwegian Government Pension Fund Norway (Norwegian Ministry of Finance and Folketrygdfondet)

PRI reporting framework 2020

You are in Direct - Fixed Income » ESG incorporation in actively managed fixed income » Implementation processes

実施プロセス

FI 01. Incorporation strategies applied

以下を記載してください。 (1)組織でアクティブ運用する債券投資について、どのESG組み入れ戦略や組み合わせを使用しているか(2)各戦略が適用されるアクティブ運用債券投資合計の割合(+/- 5%)
SSA
0 スクリーニングのみ
0 テーマのみ
100 統合のみ
0 スクリーニング + 統合戦略
0 テーマ + 統合戦略
0 スクリーニング + テーマ戦略
0 3つの戦略すべての組み合わせ
0 組み入れ戦略を適用していない
100%
社債(金融)
0 スクリーニングのみ
0 テーマのみ
0 統合のみ
100 スクリーニング + 統合戦略
0 テーマ + 統合戦略
0 スクリーニング + テーマ戦略
0 3つの戦略すべての組み合わせ
0 組み入れ戦略を適用していない
100%
社債(非金融)
0 スクリーニングのみ
0 テーマのみ
0 統合のみ
100 スクリーニング + 統合戦略
0 テーマ + 統合戦略
0 スクリーニング + テーマ戦略
0 3つの戦略すべての組み合わせ
0 組み入れ戦略を適用していない
100%

01.2. 特定のESG組み入れ戦略を選択している理由と、使用する戦略の組み合わせを説明してください。

In the fixed income portfolios, we have chosen integration as our ESG incorporation strategy because it fits best with our goal of achieving increased returns over time through responsible investment. In our view, the way an issuer handles environmental and social matters can provide an indication of credit risk. We therefore aim to integrate ESG considerations into our ongoing credit assessment procedures. We do this by making use of the ESG analyses that are available for companies that are also in the equity portfolios. For high yield issuers unlikely to be covered by ESG ratings providers, Folketrygdfondet uses an internally developed sector-based ESG framework to assess risk. These analyses are, in turn, incorporated into the credit rating we assign that issuer. We also screen 100% of the corporate issuers in our fixed income portfolios against exposure to ESG controversies. If the external service provider that carries out the normative screening alerts Folketrygdondet to an issuer involved in questionable, unethical, or unsustainable business practices, we incorporate this information into our assessment of the creditworthiness of the company in question. 

Folketrygdfondet's Nordic portfolio is subject to decisions regarding the exclusion of companies from the investment universe of the Government Pension Fund Global.

01.3. 補足情報 [任意]

Folketrygdfondet's principles for responsible investment cover all asset classes. For SSA, investments are limited to sovereign bonds and municipal bonds in the Nordic market. Hence, financial risk due to issuers' management of ESG issues is minimal. We nevertheless review annually potential adjustements to our approach to ESG integration per asset class in response to changes in the underlying risk. Thus far, given the risk profile, our integration of ESG into SSA investing does not extend beyond this initial review. 


FI 02. ESG issues and issuer research

02.1. 発行体に対する分析の一部として体系的に調査するESG要因を明示してください。

SSA
社債(金融)
社債(非金融)
環境データ
社会的データ
ガバナンスデータ

02.2. 入ってくるESG情報のフォーマットと主な情報源を明示してください。

この情報の提供者を説明してください
この情報の提供者を説明してください
この情報の提供者を説明してください
この情報の提供者を説明してください

02.3. 使用されているESG情報を簡単に説明してください。ESG組み入れ戦略全体における情報源の違いを明らかにしてください。

Screening: Folketrygdefondet's Nordic portfolio is subject to the decisions regarding the exclusion of companies from the investment universe of the Government Pension Fund Global.

Integration: Folketrygdfondet subscribes to an ESG controversy news service that alerts investors of potential breaches of international norms on ESG issues. If a potential breach of such norms is discovered at any of the companies or issuers in Folketrygdfondet's portfolios, we receive an alert notifying us of the incident. This information is incorporated into our evaluation of the company or issuer. Folketrygdfondet conducts its own analyses for issuers in the high-yield portfolio, based on a framework that the dedicated ESG resource and FI portfolio managers developed together. The FI portfolio managers use primarily information from the company, including both reporting and one-to-one meetings as a basis for analysis. Sell-side analyses sometimes include ESG information, for example, regarding new environmental regulations. In our experience, however, ESG integration in sell-side analyses is more common on the equity side.

02.4. 補足情報 [任意]


FI 03. Processes to ensure analysis is robust

03.1. 組織のESG調査プロセスの堅牢性を確保する方法を記載してください。

03.2. ESG情報または分析を投資チーム内で共有する方法を記載してください。

          The FI high yield investment team conducts issuer ESG analyses, based on an internal framework developed in collaboration with the dedicated ESG resource.
        

03.3. 補足情報 [任意]

As noted in the previous section, Folketrygdfondet obtains ESG information from several sources, such that the answers to 03.1 and 03.2 are not applicable to every individual source of ESG information. 

Folketrygdfondet's internal ESG frameworks are used by the FI portfolio managers in the high yield space before investing, to identify issues that may affect creditworthiness. We would not share these internal credit assessments, although we address outstanding ESG concerns with issuers directly.

After an investment decision is made, Folketrygdfondet undertakes a new ESG assessment if warranted by a change in the issuer's circumstances. Folketrygdfondet uses an ESG controversy alert service for news articles that link an issuer to controversial activities. 

Folketrgydfondet reports regularly to investment committee meetings on ESG. However, issuer-specific ESG information would only be discussed under extraordinary circumstances as the investment committee discussions typically involve a more overarching approach to the portfolio. 


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