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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.

It is not only our duty as investors to create long-term financial value for our customers, but also to take into account the effects of our investments on society. At Öhman, we are convinced that the challenges we face in the near future place new demands on us as managers of our customers' capital. Öhman advocates sustainable corporate governance and good ethics in the companies in which we invest. By integrating sustainability aspects into the investment process, we find new investment opportunities. Among tomorrow's winners are companies that make decisions with an understanding of future demands for responsible business. As a responsible investor, we also reduce the risk in our investments by avoiding; trademark damage, production stoppages, lawsuits etc. and can deliver a long-term sustainable return to our customers. Öhman invest in companies that 1. has a well-developed sustainability work that addresses the company's risks given the company's size and geographical presence, or 2. recently started work on developing a sustainability strategy, showing clear signs of prioritizing the area. And have interesting products and services with a clear sustainability link where we see a clear increase in demand.

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]

Öhman is a signatory of UN backed Principles for Responsible Investment. Companies we invest in shall comply will well accepted international conventions and guidelines, based on the UN Global Compact 10 principles. We belive that companies integrating UN Guiding Principles on Business and Human Rights, and that has developed Science Based Climate Targets and act to operate in line with the Paris Agreement are better investment over the long rung.  

Öhman has during 2019 developed a white paper outlining and clarifing our approach to responsible investment. The purpose of this document is to present:
- the strategies we use
- Our methodology for identifying and assessing ESG risks in our analysis process
- Some company analysis as examples of how our ESG analysis influences investment decisions

An ESG analysis means that we make an assessment of a company's preparedness and management of, for the company, significant sustainability factors - factors that may affect the company's financial position and development (positive or negative). An ESG analysis evaluates the company's policies, management systems and other information that the companies have published, eg. in the annual / sustainability report. Supplementary information is obtained by visiting the companies or visiting studies at the companies' facilities.

Since sustainability can encompass many factors and is defined in different ways, in the ESG analysis we must focus on a limited number of criteria that can actually affect a company's financial development, so-called. material criteria. We work to identify the factors that we consider to be most material.

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 identify and classify transition risks and physical climate-related risks as follows:

  • Regulatory risks, such as climate regulations, higher price on greenhouse gas emissions. For the companies we invest in this could imply higher regulatory costs, reporting, risk of fines and lawsuits as well as operational costs.
  • Technological risks such as investments in new technologies and higher costs due to depreciation of old technologies. For companies this means higher risk for capital depletion, stranded assets/technologies and increased need of successful R&D. 
  • Market risks, changing consumer demand and behavior, increased costs for raw material. Impact on companies such as decreased demand for specific products and services, increased production costs and changing valuations.
  • Reputational risks, stigmatized sectors, change in preferences, increased accountability and oversight. Impact on brand reputation and difficulties to recruit and keep personnel.
  • Acute physical risks: more extreme weather events. Could lead to decreased revenues due to smaller production capacity. Unplanned disruptions and impact on assets.
  • Chronic physical risks: changed weather patterns, higher average temperatures and rising sea levels. Impacts such as higher cost of capital, less revenues, premature phase-out of assets and higher insurance premiums.

These risks are regularly discussed in our portfolio management team and with companies. For example, we have identified companies with a high carbon intensity and engaged with them on how they are preparing to align their operations and tackle a potentially higher carbon price. This has in some cases led us to the decision to exclude/sell specific holdings. This risk framework is also used when we evaluate investments within certain sectors such as forestry, transportation/shipping, real estate etc. Different sectors are exposed to different climate-related risks, for example mainly transition risks within transportation and banking, and mainly physical risks within real estate.

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

Describe why your organisation has not yet assessed the likelihood and impact of climate risks

We started assessing and measuring climate-related risks on the portfolio-level as of last year. But we have not yet done any assessments on the likelihood of these climate-related risks. It is difficult to construct these scenarios and their implications, because of limited data and the uncertain timing and magnitude of these effect. However, we try to utilize different tools available such as PACTA, Science-based targets and TPI (Transition Pathway Initiative) as well as research from other relevant sources.

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 how and over what time frame the organisation will implement an organisation-wide strategy that manages climate-related risks and opportunities.

We notice an increasing demand on us as asset managers to look at investments more holistically. Pricing the risks of, for example, climate change is a major challenge. Partly because this is a whole new type of event that we are facing, where we have no history and past data to lean on but instead must estimate future events and their impact. In addition, climate change is systematic and its impact on the financial system global, and thus may affect different industries and companies in different ways. In addition, we often lack standardized information from the companies which do not always measure and report on their climate impact, especially if you look at the entire value chain.

But it is our intention to start and implement an organization-wide climate strategy. This process has started with using the TCFD as a foundation and framework, and we are now in the development phase of identifying goals and setting targets. Our intention is to adapt an organization-wide climate strategy in 2020.

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


          Annual climate report, based on the TCFD disclosure guidelines:

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.




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

02.3. Additional information [Optional].

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.

Öhman Fonder AB has an obligation to identify the conflicts of interest that may arise in the business. For example, between the company and its customers or between different customers in connection with the company providing services. The company also has an obligation to prevent customers' interests being adversely affected by conflicts of interest.
Öhman Fonder AB has adopted guidelines for managing conflicts of interest. The guidelines aim to prevent conflicts of interest arising and, if a conflict still arises, to prevent a negative impact on the customers' interests. The guidelines describe potential conflicts of interest and what measures are taken to prevent such negative impact. The guidelines state among other things: how a sufficient degree of independence can be achieved in order to avoid, as far as possible, conflicts of interest between different departments, units and sub-units within the company and the Öhman Group and how any potential conflicts of interest should be handled

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

Our risk monitor combines inputs from our own company meetings with ratings, ratings and data points from a number of the most reputable external analysis providers to identify companies with increased sustainability risks that require more in-depth analysis to assess the material effects of these risks.

If it comes to our knowledge that one of the companies we are invested in is involved in a serious incident or activity that may violate our policy, we shall establish contact with the company. After the company has been contacted and the company's responsibility is investigated, decisions are made as possible action. 

Through systematic and ongoing monitoring of the companies in our investment universe, we receive information about companies that are considered to be involved in violations of international conventions and standards. The surveillance takes place around the clock and covers more than 20,000 sources internationally. In cases where it is found that the company, systematically and extensively, violates international conventions, we begin a dialogue with the company concerned. The aim of the dialogue is that the company shall: - cease the breach of the convention - compensate people and the environment that has been affected by the breach of the Convention - take the necessary measures to reduce the risk that similar breaches of the Convention will be repeated in the future.