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PRI reporting framework 2020

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Outputs and outcomes

LEI 12. How ESG incorporation has influenced portfolio composition

12.1. Indicate how your ESG incorporation strategies have influenced the composition of your portfolio(s) or investment universe.

Describe any reduction in your starting investment universe or other effects.

As of 31 December 2019, more than 300 companies were excluded from KLP's investment universe. 

Specify the percentage reduction (+/- 5%)

10 %

Select which of these effects followed your ESG integration.

          ESG-integration does not always lead to concrete buy/sell decissions. However the ESG-information is a part of the company-information that is analyzed.

Describe the influence on composition or other effects.

When KLP excludes a company in a specific sector all the other companies in the same sector receive a higher weight in the index so that the sector weight is unchanged. This is done to minimize the effect of exclusions from the index. However when KLP excludes companies with more than 5% of revenue from coal,  the companies in the fossil fuel sector is not reweighted. This is to make sure that the exclusions of coal-companies does not lead to increased investment in other fossil fuel companies.  

12.2. Additional information.[Optional]

LEI12.1 Integration of ESG factors:

The boxes ticked do not apply for all the different strategis for managing active equity. For instance for the ecolabelled fund the ESG-rating of a company will lead to concret buy/sell decission, however this is not true for the assets that are manged with the acive-quant strategy.

LEI 13. Examples of ESG issues that affected your investment view / performance (Private)