Before an investment decision is made, the portfolio manager performes individual research. Data or information are collected from annual reports or external credit analysis.

If available, data supplied through Bloomberg are used. Also research made by counterparties is used. The most important ESG factors of an issuer are captured in short internal notes/bullets. Risks and opportunities including the ESG related ones are considered. If there are high risks related to an ESG factor, for which the investor is not expected to be compensated through the risk premia, an investment is not likely to take place. Also, if there is an major ESG related credit strength identifed, it could be supportive for the investment.

Within the group Financials we look for different ESG factors depending on the type of company, but governance would be important in all cases.  For intstance, in the case of banks their lending practices and ethics are of interest, along with their compliance with regulations. For real estate companies energy efficiency and purchase practises are of particular interest as well as their sustainablity thinking when it comes to urban planning etc. In the case of investment companies their holdings are analyzed according to type of company. 

Before an investment decision is made, the portfolio manager performes individual research. Data are collected from annual reports or external credit analysis.

If available, data supplied through Bloomberg are used. Also research made by counterparties is used. IThe most important ESG factors of an issuer are captured in internal notes/bullets. The risks and opportunities including the ESG related ones are considered. If there are high risks related to an ESG factor, for which the investor is not expected to be compensated through the risk premia, an investment is not likely to take place. Also, if there is a major ESG related credit strength identifed, it could be supportive for the investment.

The ESG factors of most interest varies with the type of company. For intstance, in the case of a sector such as mining, environmental factors could be the most important ESG factors whereas in another sectors it could be other factors. Governance would however be important in all cases.

Our approach is based on a mix of quantitative data and qualitative judgement. Many ESG risks are associated with reputational risks and as such are important for the future of the companies/institutions.

Company reports and counterparty research notes are used. Where available data supplied by Bloomberg are used. Attendance at company presentations gives the opportunity to ask questions directly to management.

Governance is considered to generally be the most important factor as it defines the ability to do well on E and S as well. The board of directors/management and their track record are of importance.

ESG factors will receive different level of attention depending on the level of impact relative to other credit risks and strengths regarding the issuer. Furthermore, we differentiate the type of risks we focus on depending on the nature of the issuer's business activities, geografic presence etc. For instance, in the case of banks their governance and level of compliance will be given priority.

Our approach is based on a mix of quantitative data and qualitative judgement. Many ESG risks are associated with reputational risks and as such are important for the future of the companies.

Company reports and counterparty research notes are used. Where available data supplied by Bloomberg are used. Attendance at company presentations gives the opportunity to ask questions directly to management. 

The ESG factors will receive different level of attention depending on the impact relative to other credit risks and strengths. The ESG factors of most interest will vary with the type of company. In the case of a company in a sector such as mining, environmental factors could be the most important ESG factors whereas in another sectors it could be other factors. For companies active in regions with a high degree of corruption more emphasis need to be placed on S-related factors such as work practices and code of conduct when doing business. In sectors with dangerous activities, we put more emphasis on work safety and look for data on that. Governance would be important in all cases as it defines the ability to do well on E and S as well. The board of directors/management and their track records are of importance.