Statement
Most activities we, as humans, engage in can have a negative impact on our planet and society. Even through our investments, we contribute to financing activities that have varying degrees of both positive and negative impacts on society. Kraft Finans can take steps to reduce the negative impact of investments on different sustainable levels and contribute to redirecting investments away from companies that do not work towards a sustainably satisfactory degree.
At Kraft Finans, we strive to consider how the companies we invest in affect society. We achieve this by taking into account sustainability factors when providing investment advice and making decisions on financial products on behalf of our clients. Sustainability factors refer to those related to environmental and social aspects, including respect for human rights and the fight against corruption and bribery (ESG factors).
This statement outlines how Kraft Finans considers negative impacts on ESG factors when making investment decisions on behalf of clients.
The statement is effective from 01.06.2023 and is updated at least once a year.
Description of Negative Impact on ESG Factors
When making investment decisions, we want our clients to feel confident that we systematically work to reduce the negative impact of investments on sustainability risks. We take into account several factors with a negative impact on environmental and social aspects.
Negative impact
We adhere to the exclusion list of the Oil Fund and perform due diligence ahead of all investments.
Our Other Objectives
We adhere to ESG ratings and contribute to the UN’s Sustainable Development Goals.
Planned actions
We continuously monitor our mandates and make adjustments if conditions change.
Description of Identification and Prioritization of Negative Factors on ESG.
We prioritise our negative impact on ESG factors based on the goals we have set ourselves, which follow from the commitments and initiatives we have taken. We will make use of public
available analyses of Norwegians' attitudes to sustainability through statistics from Statistics Norway, Morningstar and, not least, in our customer dialogue and their wishes in connection with sustainable investment. We also look forward to systematically building up knowledge of our customers' preferences in connection with the identification of their sustainability preferences.
How Do We Assess ESG Factors?
Kraft Finans ensures continuous monitoring of investment portfolios with the aim of influencing and reducing negative impacts on ESG indicators.
Kraft Finans plans to conduct ongoing due diligence assessments (cf. the Transparency Act) for violations of international norms and conventions. We will have an ongoing dialogue with companies that we believe violate ESG standards. If these companies do not show improvement over time, Kraft Finans will consider exclusion or sale.
If a company is assessed to have a significant negative impact on the prioritized ESG factors, we will follow Kraft Finans’ procedures for a final conclusion.
Summary
Kraft Finans considers active ownership as a central element of sustainable investment management, allowing investors to influence the companies in which they invest.
Kraft Finans will have ongoing dialogue with companies regarding activities and make assessments on whether companies consider human rights, labor rights, environmental conditions, and business ethics. Kraft Finans will collaborate with other investors to exercise ownership of companies facing ESG challenges to achieve maximum influence.
Kraft Finans will conduct regular due diligence assessments to uncover negative environmental and social conditions.
Reference to International Standards
- UN Principles for Responsible Investment (PRI)
- UN Universal Declaration of Human Rights
- UN Sustainable Development Goals
- OECD Guidelines for Multinational Enterprises
