KLP prioritizes engagement with issuers primarily based on the seriousness of ESG impacts. Some thematic engagements also include companies in which KLP has both fixed income and equity investments. KLP does not distinguish between whether its holdings in listed companies are in the form of equity or fixed income in determining whether to engage with a company. That said, it is relatively uncommon for KLP to be invested in fixed income alone outside of the Norwegian market.
KLP does not distinguish between financial, non-financial and securitised fixed income in terms of engagement.
KLP does not engage in ESG engagement with government issuers. For fixed income investments in the Norwegian market, KLP does not engage in a systematic ESG engagement process, but will take these issues up in any discussions with the issuer to the extent they are financially material.