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Aktia Bank p.l.c.

PRI reporting framework 2020

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Investment policy

SG 01. RI policy and coverage

New selection options have been added to this indicator. Please review your prefilled responses carefully.

01.1. Indicate if you have an investment policy that covers your responsible investment approach.

01.2. Indicate the components/types and coverage of your policy.

Select all that apply

Policy components/types

Coverage by AUM

01.3. Indicate if the investment policy covers any of the following

01.4. Describe your organisation’s investment principles and overall investment strategy, interpretation of fiduciary (or equivalent) duties,and how they consider ESG factors and real economy impact.

Aktia's approach to Responsible investments is defined in our Principles of Responsible Investments and in our active ownership/engagement policy. The basis of our principles is a conviction that companies that conduct their business in a responsible way, and in accordance with sustainable norms, are more profitable and exhibit a more favorable risk profile over the long term, than companies that do not act in such a way. At the same time, to us responsible investments means that we strive to achieve as good returns as possible at the chosen level of risk. We apply responsible investments throughtout our product line and across asset classes. We apply the following methods of responsible investments; Observation of ESG Factors, Exclusion, Responsible Ownership.

01.5. Provide a brief description of the key elements, any variations or exceptions to your investment policy that covers your responsible investment approach. [Optional]

01.6. Additional information [Optional].

          
        

SG 01 CC. Climate risk

01.6 CC. Indicate whether your organisation has identified transition and physical climate-related risks and opportunities and factored this into the investment strategies and products, within the organisation’s investment time horizon.

Describe the identified transition and physical climate-related risks and opportunities and how they have been factored into the investment strategies/products.

We perform climate change scenario analysis for our equity and corporate bond funds. We have e.g. identified higher transition risk for the oil service sector and held a strategic underweight for a longer time already. We also identify e.g. the reinsurance sector as more prone to climate change related physical risks. On a group level Aktia has performed 2019 a climate risk analysis of our operations. 

01.7 CC. Indicate whether the organisation has assessed the likelihood and impact of these climate risks?

Describe the associated timescales linked to these risks and opportunities.

The positive opportunities that leading companies can benefit from are partly dependent on regulation that enforces stricter requirements for climate emissions related business activities. This is already happening in some sectors and can strengthen in the near term. Technologies that can benefit in the near term do already exist and can already be improved and developed further by companies.

The risks to high emissions companies relating to rising costs for carbon emissions are likewise dependent on the timing of regulation, costs are already becoming more meaningful, and things may change in this field in a matter of the next few years.

The risks relating to physical effects will rise over time, in our view the majority of companies may still not be materially affected by physical risks during the next 5 years.

01.8 CC. Indicate whether the organisation publicly supports the TCFD?

01.9 CC. Indicate whether there is an organisation-wide strategy in place to identify and manage material climate-related risks and opportunities.

Describe

On a group level Aktia has performed 2019 a climate risk analysis of our operations. We also put in place in 2019 a group wide climate policy as part of the sustainability program of Aktia.

1.10 CC. Indicate the documents and/or communications the organisation uses to publish TCFD disclosures.

specify

          Carbon footprints and carbon intensity are disclosed in our monthly fund reports and our biannual Responsible Investments review.
        

SG 02. Publicly available RI policy or guidance documents

 

02.1. Indicate which of your investment policy documents (if any) are publicly available. Provide a URL and an attachment of the document.

URL/Attachment

Attachment

URL/Attachment

Attachment

URL/Attachment

Attachment

02.2. Indicate if any of your investment policy components are publicly available. Provide URL and an attachment of the document.

URL/Attachment

URL/Attachment

URL/Attachment

02.3. Additional information [Optional].

Fund specific principles are part of the fund rules, which are publicly available at www.aktia.fi

The topics listed above are covered in two different documents, the overall ESG/RI policy that is asset class specific and covering the ESG methods used and in the Active Ownership policy, covering more in detail e.g. engagement and proxy voting. THe active ownership policy is only available in Finnish and Swedish. Both policies are publicly available on the www.aktia.fi website. 


SG 03. Conflicts of interest

03.1. Indicate if your organisation has a policy on managing potential conflicts of interest in the investment process.

03.2. Describe your policy on managing potential conflicts of interest in the investment process.

The policy defines a process for identifying and eliminating potential conflicts of interest. This area is overseen by the compliance department. 

03.3. Additional information. [Optional]


SG 04. Identifying incidents occurring within portfolios

04.1. Indicate if your organisation has a process for identifying and managing incidents that occur within investee entities.

04.2. Describe your process on managing incidents

We use a service provider, ISS ESG for norms-based screening of our direct equity and corporate bond funds. This way we identify possible norm-breaches in the investee companies effectively. In case portfolio companies are found to have breached the UN Global Compact principles, they may be approached for engagement on our behalf by our collaboration partners ISS ESG. We also engage with companies within other collaborative engagement initiatives, such as the Climate Action 100+. We also conduct our own direct engagement with investee companies and this is done mainly by our portfolio managers and analysts. 


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