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.