Each portfolio manager is responsible for leading the dialogue with the companies s/he covers, in collaboration with the director of equities and the dedicated ESG resource. Folketrygdfondet undertakes a biannual review of the equity portfolio to plan which companies to contact in the coming half-year, and any particular topics for that dialogue in addition to a general market update. In advance of all meetings with Norwegian companies, Folketrygdfondet reviews the agenda to ensure that relevant questions related to ESG are included in the agenda. As a result, a meeting with the CEO can include a discussion of both the company's financial targets and capital structure as well as labor rights in its supply chain. If there is a need for a more in-depth discussion on a particular ESG issue, we arrange for a meeting with the relevant company specialist. Notes from the meetings are shared on a joint platform, and we discuss insights gained from this dialogue in portfolio meetings.
In our experience, this model demonstrates that Folketrygdfondet has a single, aligned view on ESG, and that it is integrated in our investment philosophy.
We do not publish company-specific information from our engagements. Folketrygdfondet primarily seeks a trusting dialogue with portfolio companies. In our experience, this has produced the best results over time. Public criticism of, or disagreement with the companies is therefore not a goal in itself. However, if we are unable to reach agreement with the company, we will make our standpoint clear, publicly as well.