The SCPF investment policy is focused on long-term value creation, where SCPF acts as a responsible investor; an active owner of assets that takes into account both financial and ESG considerations in its investment decisions.
ESG incorporation in investment decision making: All internal Fixed Income Corporate (non-financial) portfolio managers have access to MSCI ESG data. This includes ESG Ratings & Research, Controversial Conduct scores and Climate Change metrics. The data is used as an input for portfolio monitoring and is considered as part of the risk/return analysis when making investment decisions.
Green bonds: The market for green bonds is increasing for Corporate Credit offerings and is considered in the security-selection phase. SCPF has a positive attitude towards this asset category and green bonds will be added to the portfolio where deemed appropriate.
Engagement: SCPF has recruited Hermes EOS for engagement activities on its corporate credit holdings (incl. non-financial).
Exclusions: PMs refrain from owning financial instruments of companies on the SCPF exclusion list. This could be because of involvement in the manufacture, sale or distribution of cluster munitions and anti-personnel landmines or because of controversial conduct/UNGC non-compliance combined with unsuccessful engagement (or direct divestment in case of overtly unacceptable activities).