External FI Investments &
External Equity Investments
We do not explicitly require ESG incorporation from our external asset managers. In practise, an overwhelming majority of them do so and over the years, we have encouraged managers to adopt best in class ESG integration practises. We select asset managers with deep, fundamental-based security selection that has its merits on the understanding of long-term industry and company drivers, especially those of material importance from our fiduciary duty perspective. ESG- related factors are no exception to this. Norm-based screening is used for inhumane weapons in the external mandates.
In 2019, we changed the asset manager for our passive equity exposure and in addition to price, evaluation of the candidates' ESG integration capabilities was a key decision factor. We chose a manager who had the highest ESG rating (by an external consultant) among those involved in the tender process.