KLP uses external service providers for information on environmental, social and governance (bribery and anti-corruption) metrics. These are screening-based. KLP conducts in-house analysis primarily on Norwegian issuers, but also on foreign issuers in the case of serious violations.
Government bonds: KLP shall not invest in bonds issued by countries where the state or government officials are the object of UN or EU economic sanctions to which Norway adheres. KLP shall not invest in the lowest-ranked countries in the World Bank's Worldwide Governance Indicators (WGI). Excluding a government bond from the investment universe does not normally require the exclusion of other forms of investment in the same country.
KLP shall also monitor developments in companies subject to UN and EU sanctions to which Norway adheres, and consider freezing purchases of, or divesting, the relevant companies' securities.
In addition KLPs ecolabeled fixed income funds have a criteria on 50% of the AUM invested in companies with a high ESG-rating.