Public HTML RI reports - PRI reporting framework 2020

Sitra

PRI reporting framework 2020

Basic information [OO 01 - 09] Asset class implementation gateway indicators [OO 10 - 12] Peering questions [OO LE 01 - HF 01]

Strategy and Governance

Objectives and strategies [SG 05 - 06] Governance and human resources [SG 07 - 08] Promoting responsible investment [SG 09 - 11] Outsourcing to fiduciary managers and investment consultants [SG 12] ESG issues in asset allocation [SG 13 - 15] Asset class implementation not reported in other modules [SG 16 - 17] Innovation [SG 18] Communication [SG 19]

Indirect – Manager Selection, Appointment and Monitoring

Listed Equity and Fixed Income Strategies [SAM 01] Selection [SAM 02 - 03] Monitoring [SAM 05 - 07] Outputs and outcomes [SAM 08 - 09]

Direct - Listed Equity Active Ownership

Overview [LEA 01] Outputs and outcomes [LEA 09 - 11] (Proxy) voting and shareholder resolutions [LEA 12 - 21]

Confidence building measures

Confidence building measures [CM1 01 - 07]

Export Public Responses

You are in Strategy and Governance » Investment policy

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.

Yes

01.2. Indicate the components/types and coverage of your policy.

Select all that apply

Policy components/types

Coverage by AUM

Policy setting out your overall approach

Formalised guidelines on environmental factors

Formalised guidelines on social factors

Formalised guidelines on corporate governance factors

Fiduciary (or equivalent) duties

Asset class-specific RI guidelines

Sector specific RI guidelines

Screening / exclusions policy

Engagement policy

(Proxy) voting policy

Other, specify (1)

Other, specify(2)

Applicable policies cover all AUM

Applicable policies cover a majority of AUM

Applicable policies cover a minority of AUM

01.3. Indicate if the investment policy covers any of the following

Your organisation’s definition of ESG and/or responsible investment and it’s relation to investments

Your investment objectives that take ESG factors/real economy influence into account

Time horizon of your investment

Governance structure of organisational ESG responsibilities

ESG incorporation approaches

Active ownership approaches

Reporting

Climate change

Understanding and incorporating client / beneficiary sustainability preferences

Other RI considerations, specify (1)

Other RI considerations, specify (2)

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.

Sitra is a long-term investor whose investment activities are intended to ensure the continuity of Sitra’s operations. The investments are made in accordance with Sitra’s general rules for investment activities and the annual investment plan. The Act on Sitra states that all investments should be made in a secure and profitable manner. The fund should primarily finance its own operations, so the target is the best possible return on investments at a defined risk level. Responsible investing and operating methods are important aspects both in terms of expected financial returns and risk management.

The UN Principles for Responsible Investment (PRI) serve as instructions and guidelines for Sitra’s responsible investment activities. Alongside the PRI, the international UN Global Compact principles serve as an international framework for implementing Sitra’s responsible investment activities.

Sitra´s investments are mainly done through funds. When choosing new funds we discuss ESG issues with fund managers and expect them to have responsible investment policies that they follow and integrate into fund management. The responsible investment policy of our fund managers needs to be aligned with ours. We benchmark also our activities frequently with other asset owners to learn best practices.

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]

Our goal is to include ESG considerations in all of our investment activities, taking into account the characteristics of each asset class and different instruments. This requires the identification of key material ESG factors. There are several methods of responsible investing and the methods used by Sitra are ESG integration, active ownership and engagement, thematic investments, exclusions and impact investing.

ESG integration means that we include environmental, societal and corporate governance (ESG) issues in investment analysis and investment decisions and also in investment monitoring. ESG issues are integrated into the investment analysis alongside traditional financial indicators. The minimum requirement for fund investments is that the asset manager has signed the PRI or has a responsible investment policy. The activities of asset managers are regularly evaluated in discussions with them. Responsible investing procedures are monitored annually via asset manager meetings or by asset manager questionnaires. The purpose of monitoring is to obtain information on best practices and areas for improvement.

Sitra aims to participate in between one and three investor initiatives each year within the limits of its own resources. We participate in investor initiatives that support Sitra’s investment strategy as well as sustainable development goals, such as the Climate Action 100+ initiative, which aims to reduce emissions.

Examples of Sitra’s thematic investments are clean technology funds and renewable energy infrastructure funds.

Sitra cannot invest in funds that are registered in tax havens.

Sitra has helped create a domestic impact investing market and is an investor in social impact bonds (SIBs), which aim to create new ways of solving societal problems.

Sitra´s updated responsible investment strategy was approved by our board on October 2019. This strategy has asset class specific investment guidelines. As a new feature, negative screening of specific sectors was introduced as well as norm breaches will be regularly followed in the future. The updated responsible investment policy needs to be implemented accross all of the asset classes and the alignment between policy and investments must be reached within a 2 year transition period.

01.6. Additional information [Optional].

SG 01 CC. Climate risk (Private)

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.

Policy setting out your overall approach

URL/Attachment

URL

URL https://www.sitra.fi/en/articles/responsibility-in-investing/

Attachment (will be made public)

Asset class-specific RI guidelines

Screening / exclusions policy

Engagement policy

(Proxy) voting policy

We do not publicly disclose our investment policy documents

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

Your organisation’s definition of ESG and/or responsible investment and it’s relation to investments

URL/Attachment

URL

URL https://www.sitra.fi/en/articles/responsibility-in-investing/

Attachment

Time horizon of your investment

URL/Attachment

URL

URL https://www.sitra.fi/en/articles/responsibility-in-investing/

Attachment

Governance structure of organisational ESG responsibilities

URL/Attachment

URL

URL https://www.sitra.fi/en/articles/responsibility-in-investing/

Attachment

ESG incorporation approaches

URL/Attachment

URL

URL https://www.sitra.fi/en/articles/responsibility-in-investing/

Attachment

Active ownership approaches

Reporting

URL/Attachment

URL

URL https://www.sitra.fi/en/articles/responsibility-in-investing/

Attachment

We do not publicly disclose any investment policy components

02.3. Additional information [Optional].

We are currently updating our website and the updated responsible investment policy will be uploaded as soon as possible.

SG 03. Conflicts of interest

03.1. Indicate if your organisation has a policy on managing potential conflicts of interest in the investment process.

Yes

03.2. Describe your policy on managing potential conflicts of interest in the investment process.

The employees are required to disclose any ties that could potentially create a conlict of interest.

Sitra has an ethical code of conduct that cover entire staff.

03.3. Additional information. [Optional]

SG 04. Identifying incidents occurring within portfolios (Private)

Previous Section Next Section