Skandia expects the companies that we invest in to manage both risks and opportunities associated with ESG aspects in order to deliver long term returns. Skandia has an internal databse where companies are rated both on ESG conduct and product. The rating is based on both external input and Skandia's internal ESG research. The database is accessible for all portfolio managers.
Skandia expects the companies that we invest in to comply with UN Global Compact principles. All holdings are screened regurlarly for norms based violations. Based on the screening result, as well as the severity of the breach and ownership share, we initiate an engagement. In case a company isn't able to demonstrate a credible action plan, the company might ultimately be subject for exclusion. In addition, Skandia does not invest in companies that produce tobacco, cannabis or produce and/or develop controversial weapons nor involved in thermal coal extraction.