We integrate ESG related threats and opportunities in all our investment strategies.
Reflecting on our ESG assessments, we adjust for potential changes in future earnings, balance sheet effects, and risk premiums in all our investment assessments. Within our portfolio, we actively seek opportunities to improve ESG to lower their vulnerabilities and improve their potential. This helps lower both their and our risks. If we consider the ESG exposure to be too high or conclude that the companies are not willing to address their underlying ESG risks, we will elect to not make new or further investments in such companies.
We actively seek to mitigate negative externalities through the use of exclusions, active ownership, and quantitative analyses.
We exclude companies from our portfolio that violate international norms or that produce or promote products with negative characteristics. This includes, among others, companies with significant climate or environmental effects, companies that violate international law or human rights, or companies with challenges related to corruption or other forms of economic crime. We engage in very active ownership to ensure continuous improvement in our portfolio. We employ quantitative analyses to track the exposure of our portfolio towards e.g. carbon-intensive sectors.
Integration of sustainability risk is part of the overall risk assessment we calculate for our investment products and is therefore included in all risk references in our guidelines on remuneration.
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