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We believe strong performance over time depends on investing responsibly. Companies with a strong and/or improving record on the environment, corporate governance and social responsibility are, in our view, more likely to provide excess returns to investors over time. We therefore analyze ESG issues and integrate sustainability in our investment process. Furthermore, analyzing a company’s ESG factors is a central part of our risk analysis.
Arctic Asset Management does negative screening through the exclusion list of Norwegian Government Pension Fund Global (NBIM). Securities excluded by NBIM are excluded from our investment universe.
ESG is integrated in the portfolio managers’ fundamental, bottom-up investment process through a company scorecard. This ensures that strong governance, a favorable environmental profile and social responsibility are rewarded in our investment decisions, and vice versa.
We are a signatory to the UN PRI, the UN Principles for Responsible Investments. The six principles commit us to include ESG in our investment analysis, be active owners, seek ESG disclosures, promote acceptance of the UN Principles, work to enhance our effectiveness in implementation, and report on our activities.
Arctic Asset Management is a member of Norsif, the Norwegian financial industry forum for responsible and sustainable investments. We are also a member of FAIRR, a collaborative investor network which raises the ESG risks and opportunities in livestock production.
The EBA Action Plan on Sustainable Finance has as a key objective to reorient capital flows towards sustainable investments. AAM recognizes these policies are likely to affect the risk-reward of investments, and the flow of funds between companies and sectors.
The EU Sustainable Finance Disclosure Regulation requires asset managers to publish information about the integration of sustainability risks in their investment decision‐making. AAM portfolio managers ensure integration through company scoring of ESG issues and sustainability risks, as part of their fundamental investment approach.
Arctic Asset Management has company ‘Guidelines for engagement and the exercise of voting rights’, developed in line with the European Fund and Asset Management Association code for external governance and the UN PRI. These are published on our website.
Companies should follow what we consider principles of good corporate governance. In Norway, these have been organized in guidelines from the Norwegian Corporate Governance Board (NCGB/NUES). Governance is included in our internal ESG score.
AAM Guidelines for Responsible Investments
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