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Didner & Gerge Fonder AB

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%
100 %
Total actively managed listed equities 100%

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

The screening covers both norm critieria and sector criteria. The norm criteria includes environmental factors as well as human rigths, labour rigths and corruption. If a company has a confirmed violation in the norm area we must always take action, preferably start a direct dialouge with the company, or through an external partner/service provider. No investments can be made in the following sectors: pornography, fossil fuel (including coal), tobacco, commercial gaming, controversial weapons or uranium. A major part of our investments also exclude alcohol, military and GMO-crops. We have a strong focus on the long term sustainablity and consider the ESG factors to be of importance for both future profits and risk mitigation in all of our investments. All investments are analyzed both internally end externally in terms of E, S and G.

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

All our investments are based on both negative screening and positive integration. We do not invest in companies that underperform in sustainability (in other words companies that breach norm criteria or sector criteria). We seek to invest in companies that are in the forefront of sustainability, where sustainability is a part of the company's strategy. 


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


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

03.1. Indicate whether your organisation has a process through which information derived from ESG engagement and/or (proxy) voting activities is made available for use in investment decision-making.

03.2. Additional information. [Optional]

At least annually in the sustainability report.


(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

Description

We perform sector based screening to find out the percentege of a company's revenue that strives from tobacco, pornography, military, alcohol, commersial gaming and fossil fuels (including coal). We also screen for alleged or confirmed violations against international norms and conventions in the areas of environment, social responsibility and corporate governance. The screening of international norm and conventions also includes controversial weapons.

Screened by

Description

We have guidelines that specify we should not invest in companies that have confirmed violations to these norms. If we already own a company that makes a violation we must always at least initiate a dialouge with the company.

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

The fund company (CEO and board) has set up guidelines with the framework for which criteria we should screen for. We update the guidelines annually and inform clients of changes either through our quarterly reports and/or at our website.There are some differences between the funds on which criteria they must take notice of with regards to the negative screening. None of the funds can invest in companies involved in controversial weapons. The other products and sectors we screen for are pornography, weapons, alcohol, tobacco, commersial gaming and fossil fuels. Some funds do not allow any of the companies to be involved in these areas at all, and some do allow some sectors to some extent. To some extent we have set the criteria in dialouge with clients but mostly it is the decision of the portfolio managers, with of course the company guidelines as a framework. When it comes to the norm based screening the guidelines states that investments should only be made in companies that do not breach international conventions and norms on environment, social aspects (human rigths, labour rights, corruption) and corporate govnernance. The screening service provider sets up screening with regards to a number of international conventions including those mentioned above. The screening is performed at least four times a year.


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]


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
Environmental

Environmental

Social

Social

Corporate Governance

Corporate Governance

08.2. Additional information. [Optional]

All our funds systematically review the significance of ESG issues, some to a large extent, some a little less.

A bigger proportion of corporate governance factors are systematically researched and incorporated into our investment analysis. The portfolio managers seek investments in companies with good management and owners who ensure that the company develops their products and services to make sure they are relevant in the future, and takes into account all the company's risks. The majority of the companies in which the fund invests are foundational or have significant family ownership. This is something that we both believe increases the likelihood of good and long-term corporate governance.


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

New selection options have been added to this indicator. Please review your prefilled responses carefully.

10.1. Indicate which aspects of investment analysis you integrate material ESG information into.

Proportion of actively managed listed equity exposed to investment analysis

Proportion of actively managed listed equity exposed to investment analysis

Proportion of actively managed listed equity exposed to investment analysis

Proportion of actively managed listed equity exposed to investment analysis

10.2. Indicate which methods are part of your process to integrate ESG information into fair value/fundamental analysis.

10.4. Describe the methods you have used to adjust the income forecast/valuation tool.

Our portfolio managers perform a fundamental analysis of the companies. We have a stock-pickning, bottom-up approach. For some of our funds it is of great importance that the company address the ESG issues in a very outspoken way, and the portfolio managers base all of their investments on the belief that the long term perspective is of importance for both employees, customers, suppliers, investors and communities. Thus the portfolio managers base their forecasts for the company on its ability to perform in the long term perspective in which the ESG factors are of great importance.

10.6. Additional information. [OPTIONAL]


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