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Aktia Bank p.l.c.

PRI reporting framework 2020

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ESG incorporation in actively managed listed equities

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 effects of environmental, social and governance factors are observed as an integrated part in the investment process. Positive factors in this respect are for example opportunities arising from trends related to the environment and the development of society, which can benefit leading companies. Negative factors may relate for example to how companies manage environmental, social and governance related risks in their activities. We identify ESG-risks and possibilities, and thereby create a better ground for sound investment decisions.

Certain types of business activities, which in themselves are legitimate, can suffer from adverse events such as claims for compensation and negative publicity, which brings risks that are difficult to predict and quantify. Aktia avoids investments in companies with such a risk profile. Regarding our mutual funds Aktia Asset Management and Aktia Fund Management Company have agreed, that we do not do direct investments in companies whose main area of activity is gambling, tobacco, or weapons production. We also do not make direct investments in companies that employ child labour.

We have developed our approach and strategy on the basis that they are in the best interest of our clients.

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


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


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


(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

In accordance with Aktia's Responsible Investment guidelines, we do not invest in companies who's main business activity is one of the following: gambling, tobacco, weapons production. These companies are excluded through sectoral/activity-based screening.

We do not invest in companies that use child labour.

Screened by

Description

Screening based on compliance with the UN Global Compact Principles forms the basis for our norms based engagement activity.

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

The screening criteria mentioned above are based on Aktia's Responsible Investment policy. The policy was updated most recently at the end of 2018, and we will notify clients next time we revise the policy. The policy is available at Aktia's internet site. Significant changes in the screening criteria would be communicated to clients.


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.

05.5. 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]


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.

09.5. Describe how ESG information is held and used by your portfolio managers.

          The effects of ESG factors are taken into account when assessing investment opportunities.
        

09.6. Additional information. [Optional]

Aktia uses a wide variety of information sources to support observation of ESG factors in our investment analysis. ESG information relating to potential breaches against the Global Compact principles is delivered by one of our service provider, this relates to a minority of cases as most of our investments succeed in adhering to said principles. ESG information is observed by our regular service providers in their investment analysis. Information can also be obtained from the companies directly, as well as from publicly available sources. Information on company impact is available to all portfolio managers through usage of the quantitative analysis based impact tool provided to us by the Upright Project. Aktia also uses our own proprietary ESG data tool to inspect ESG data in an efficient way. 


LEI 10. Aspects of analysis ESG information is integrated into (Private)


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