We are restricting our funds’ investment universes (i.e. the companies and asset classes we can invest in) by excluding such companies that are operating in sectors where there is a general prohibition or in conflict with our ESG commitments on the policy level. The general prohibition excludes companies involved in controversial weapons such as cluster mines, landmines, nuclear weapons, biological weapons, chemical weapons as well as weapons of white phosphorus or depleted uranium. Apart from this, there are no absolute prohibitions towards any specific type of investment. Instead, ESG factors are well-integrated into the fundamental analysis prior to every investment decision.
External resources such as reports and ESG research data are being used by PriorNilsson to consider exclusion. As an example, the AP7 fund communicates a ”blacklist” bi-annually that serves as a basis for exclusion from our investment universe. On top of this, our external ESG research analysis providers supply us with ad hoc recommendations on companies that could be excluded.
On a post-investment basis the news flow regarding portfolio holdings is naturally covered for news that could lead to exclusion based on our commitments.