When it comes to government bonds, in our view the responsibility of a country depends on its willingness and ability to solve the challenges presented to it. On a general level, the countries that are able to produce a quality of life that is good, or improving over time, for its citizens, act responsibly. In the short term, temporary factors can impact the economic growth and the quality of life in any specific country. Over the longer term, the economies that are well governed have the highest probability of creating added value for their citizens. We observe the following (both quantitatively and qualitatively) when assessing government bonds from sustainability perspective: political practices, government strength, social development, economic and financial stability, ability to withstand external shocks and willingness to reform.
In corporate bonds we identify ESG related risks and opportunities in different ways and thus create a better ground for sound investment decisions. Therefore, we apply negative screening in accordance with Aktia's Responsible Investment Principles, integrate ESG factors in day-to-day credit reseach and invest actively in thematic bonds such as green and social bonds.