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.
Examples from LV's Shareholder Policy [LV = Lífeyrissjóður verzlunarmanna (the Pension Fund of Commerce)]
LV's role and emphasis in companies' corporate governance (ESG related bullets)
- Earning a good, longterm return on its portfolio in a responsible manner is a key task of LV.
- The Fund makes it a priority that companies in which it invests follow sound business practices in their operations and exercise good corporate governance
LV's guidelines as an investor (ESG related bullets)
- In daily operations of the company, (investing company funds,) the Board of Directors and management should be guided by the company's long-term interests taking into account its stakeholders.
- Voting rights are among the basic rights conveyed by a holding in a company. The principle of one share one vote is a priority.
- Emphasis is placed on having the company's Board of Directors and management make every effort to operate in accordance with law and showing appropriate regard for other stakeholders.
- Another priority is to have management ensure compliance with the rules and guidelines on environmental issues which apply to the activities concerned.
- The Pension Fund of Commerce is a signatory of the UN Principles for Responsible Investment (UNPRI)
Provide a brief description of the key elements, any variations or exceptions to your investment policy that covers your responsible investment approach. [Optional]
When evaluating investment proposals, an integral part of the Due Diligence process is to identify the ESG factors of that particular investment. If the proposal includes outsourcing investment decisions (e.g. a mutual fund or PE) the DD focuses on the managers capabilities on ESG and to what extent those capabilities are leveraged unto underlying investments.