This report shows public data only. Is this your organisation? If so, login here to view your full report.

Ohman

PRI reporting framework 2020

Export Public Responses
Pdf-img

You are in Direct - Fixed Income » ESG incorporation in actively managed fixed income » (A) Implementation: Screening

(A) Implementation: Screening

FI 04. Types of screening applied

04.1. Indicate the type of screening you conduct.

Select all that apply
SSA
Corporate (financial)
Corporate (non-financial)
Securitised
Negative/exclusionary screening
Positive/best-in-class screening
Norms-based screening

04.2. Describe your approach to screening for internally managed active fixed income

Screening is conducted quarterly and is provided by a third-party ESG data provider, results are reviewed by the ESG team.

Negative/exclusionary screening:

Norms-based screening. Issuers confirmed for violating international norms and conventions (ILO, UN Global Compact etc., see FI 05.1 for more examples) are not eligible for investments.
Controversial weapons. Screens out issuers involved in manufacture and production of cluster munitions, biological and chemical weapons and anti-personnel landmines.
Product-related. Screens out issuers involved in production and distribution of alcohol, tobacco, pornography and gambling. Also screens out companies involved in extraction of fossil fuels (max. 0% of company revenues allowed), as well as coal-based energy production or oil- and gas services (max. 10% of company revenues allowed).

Positive screening:

Bond issuers ESG ratings is retrieved from ESG data provider, quarterly updated and readily available in centralized portfolio data system. Underlying ESG data variables feeds into sector-specific scorecard, used for issuer assessment and selection. Screening results and specific ESG issues are discussed at regular meetings with the portfolio management team (monthly).

04.3. Additional information. [Optional]


FI 05. Examples of ESG factors in screening process

05.1. Provide examples of how ESG factors are included in your screening criteria.

Type of fixed income

ESG factors

Screening

Description of how ESG factors are used as the screening criteria

Negative/exclusionary screening:
Controversial weapons. Screens out companies involved in manufacture and production of cluster munitions, biological and chemical weapons and anti-personnel landmines.
Product-related (ethical/social factors). Screens out companies involved in production and distribution of alcohol, tobacco, pornography and gambling.
Sector-specific (environmental factors). Also screens out companies involved in extraction of fossil fuels (max. 0% of company revenues allowed), as well as coal-based energy production or oil- and gas services (max. 10% of company revenues allowed).

Type of fixed income

ESG factors

Screening

Description of how ESG factors are used as the screening criteria

Norms-based screening. Companies confirmed for violating international norms and conventions are not eligible for investments, based on UN Global Compact, OECD guidelines and ILO conventions.

Examples of environment-related conventions, human rights, labour and anti-corruption:

  •  Rio Declaration on Environment and Development
  •  The Declaration of the United Nations Conference on the Human Environment
  •  Paris Agreement
  •  The Universal Declaration of Human Rights
  •  Convention on the Rights of the Child
  •  Declaration on the Rights of Indigenous People
  •  ILO Declaration on Fundamental Principles and Rights at Work
  •  UN Convention against Corruption

Type of fixed income

ESG factors

Screening

Description of how ESG factors are used as the screening criteria

Positive screening. Bond issuers ESG ratings is retrieved from ESG data provider, quarterly updated and readily available in centralized portfolio data system. ESG factors we have included in the corporate (financial) scorecard are: climate-related risks, ESG integration, business ethics and compliance, product quality and governance, management incentives and risk & resilience. Underlying ESG data variables feeds into sector-specific scorecard, used for issuer assessment and selection.

Type of fixed income

ESG factors

Screening

Description of how ESG factors are used as the screening criteria

Positive screening. Bond issuers ESG ratings is retrieved from ESG data provider, quarterly updated and readily available in centralized portfolio data system. ESG factors we have included in the corporate (non-financial) scorecard are for example: environmental governance, climate change, resource use, human rights, employee relations, CSR strategy and business ethics. Underlying ESG data variables feeds into sector-specific scorecard, used for issuer assessment and selection.

05.2. Additional information.


FI 06. Screening - ensuring criteria are met

06.1. Indicate which systems your organisation has to ensure that fund screening criteria are not breached in fixed income investments.

Type of screening
Checks
Negative/exclusionary screening
Positive/best-in-class screening
Norms-based screening

06.2. Additional information. [Optional]

The internal risk control function monitors on a daily basis that our fund holdings are in line with its screening criteria. Any deviations must immediately be reported to the portfolio manager, CEO and Head of Responsible investment. The portfolio managers must sell any position that are in breach of the screening criteria. Head of Responsible investment must annually report to the Board of Directors on the selection process and its compliance.


Top