Sustainability-related disclosures
Our principles
Fondsfinans Kapitalforvaltning is convinced that the financial industry has an important role to play in the transition to a more sustainable economy and society, and we will do our part to contribute within the frameworks set by our management mandates.
We are committed to sound corporate governance principles and long-term value creation. We believe that companies with a strong approach to material ESG factors (environmental, social, and governance) will reduce their risk, hold an important competitive advantage, and be the winners of tomorrow.
Our goal is to work with ESG in a systematic and constructive manner that creates value for the management of funds and for unitholders.
Order in our own house
In addition to our commitment to sustainability in our role as investor and owner, we aim to be a driving force for good ESG practices in our own operations. We are committed to equality and actively seek to increase the proportion of women across different parts of the organisation. We invest in our employees and offer opportunities for further education and development through our education fund. We have an ambition for our office operations to be climate neutral, and purchase carbon credits to offset our emissions.
As a company, Fondsfinans Kapitalforvaltning is conscious of its social responsibility, and we aim to contribute positively beyond what we can do as an employer and investor. We support Kreftforeningen and Kirkens Bymisjon, and contribute to the joy of hiking in the mountains. The mountain cabin Fondsbu in Jotunheimen is owned by Fondsfinans and leased to DNT Oslo og omegn for a nominal fee of NOK 1 per year.
Collaboration and participation in external initiatives
Fondsfinans Kapitalforvaltning has signed up to the UN PRI (the UN Principles for Responsible Investment). By doing so, we commit to adhering to the six applicable principles for responsible investment developed by the initiative with the support of the UN, and to reporting our actions in relation to these.
Relevant documents
ESG in our investment process
ESG is an integral part of our investment process. This means that we incorporate consideration of material ESG factors into company analyses, portfolio construction, and the exercise of ownership.
Our portfolio managers seek to identify companies that we believe have strong potential for long-term value creation. We focus on long-term trends such as the technological, demographic, and green transitions, and assess, among other things, how companies are exposed to these trends.
We are also interested in companies’ positioning in relation to targets within recognised frameworks such as the Paris Agreement or the UN Sustainable Development Goals.
Active ownership
We want to know the companies we invest in. This means we seek to meet with management, understand the ownership structure, and gain insight into the business, the value chain, and the value drivers. This includes material ESG factors and strategic choices related to sustainable business operations. We want the companies we invest in to have a considered shareholder policy, to treat shareholders equally, to be transparent, and to demonstrate social responsibility.
We will use active ownership to exert influence where we believe it will create value for the companies and our unitholders. Fondsfinans Kapitalforvaltning will, among other things through dialogue with management, participation in general meetings, and the exercise of voting rights, seek to contribute to the adherence of sound corporate governance principles.
We aim to vote at 100% of meetings and use an external data provider to facilitate our voting.
Regulation and reporting
We observe a growing interest in ESG in the market and see that this is an area developing rapidly in terms of both practice and reporting. Increasing requirements are also being placed on us as a manager by regulators and other stakeholders. As a Norwegian manager, specific EU regulations apply to Fondsfinans Kapitalforvaltning.
SFDR Disclosures
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ESG in Our Investment Process
ESG is an integral part of our investment process. This means we incorporate consideration of material ESG factors into company analysis, portfolio construction, and stewardship activities.
Our portfolio managers seek to identify companies that we believe have strong potential for long-term value creation. We focus on long-term trends such as the technological, demographic, and green transitions, and assess, among other things, how companies are positioned relative to these trends.
We also consider companies’ alignment with the goals of recognised frameworks such as the Paris Agreement and the UN Sustainable Development Goals.
Stewardship
We aim to know the companies we invest in. This means we seek to meet with management, understand the ownership structure, and gain insight into the business, value chain, and key value drivers. This includes material ESG factors and strategic choices related to sustainable business practices. We expect the companies we invest in to have a considered shareholder policy, to treat shareholders equitably, to be transparent, and to demonstrate corporate responsibility.
We will exercise active ownership to drive change where we believe it will create value for the companies and our unitholders. Fondsfinans Kapitalforvaltning will, through dialogue with management, participation in general meetings, and the exercise of voting rights, seek to promote adherence to sound principles of corporate governance.
We aim to vote at 100% of meetings and use an external data provider to facilitate our voting.
Regulation and Reporting
We observe growing interest in ESG in the market and recognise this as a rapidly evolving area in terms of both practice and reporting. We are also subject to increasing requirements from regulators and other stakeholders. As a Norwegian asset manager, specific EU regulations apply to Fondsfinans Kapitalforvaltning.
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Fondsfinans Kapitalforvaltning AS has currently chosen not to consider or report on all principal adverse impacts of investment decisions on sustainability factors (defined by the EU as Principal Adverse Impact (PAI) indicators) at entity level. This is because we have not yet established procedures for incorporating all PAI indicators across our equity and fixed income funds. However, certain PAI indicators are already embedded in our exclusion and monitoring procedures for all our funds, as described in the respective funds’ documentation (prospectus and annual reporting). For more information on our exclusions, please refer to the section entitled “Exclusion Criteria Across Our Funds.” We will consider developing procedures to incorporate the remaining PAI indicators across our funds in a manner consistent with our investment strategy. A new assessment of whether it is practically feasible to consider and report on PAI indicators at entity level will be conducted by 30 June.
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The Board of Directors of Fondsfinans Kapitalforvaltning AS (“Fondsfinans”) has adopted a remuneration policy for the company’s employees and elected officers. The remuneration policy complies with the Regulation of 21 December 2011 No. 1467 to the Securities Trading Act, and will be reviewed by the Board at least once a year. The remuneration policy is designed to take sustainability risk into account and to not encourage risk-taking that is incompatible with the risk profile, articles of association, or other constitutional documents of the funds under management. The integration of sustainability risk forms part of the overall risk assessment for our investment products and is therefore incorporated into all risk references in the remuneration policy.
Would you like to know more about our work with ESG?
Get in touch with us at esg@fondsfinans.no