The Fund follows OP Asset Management’s Principles for Responsible Investment. The consideration of responsibility issues in investment analyses and decisions provides additional information that complements conventional financial and market data. Relevant responsibility factors can in the long run affect the financial performance of investments and, thereby, the obtained return. The responsibility analysis of investment products uses both the ESG analysis of an external provider, MSCI ESG Research, and OP Asset Management’s ESG analysis model. Assessment of good governance forms an integral part of our investment analysis. We monitor and report on factors such as the investments’ share of green revenue, carbon intensity and ESG risk category, based on data received from an external service provider, MSCI ESG Research. The benchmark indexes selected for our funds do not follow the same ESG investment policy as our funds.
Exclusionary screening: The fund excludes companies from its active direct investments according to OP's general exclusionary principles – for example, controversial weapon manufacturers, mining companies producing thermal coal, power companies using thermal coal, companies producing tobacco and unconventional oil and gas, and companies that have breached international norms and where engagement has been unsuccessful. The list of exclusions is public. In negative screening, the fund first uses a general exclusion list and then excludes other harmful and controversial sectors. The funds do not invest in tobacco companies nor in companies involved in unconventional oil and gas extraction. We use the data and analysis of MSCI ESG Research and Sustainalytics to aid this exclusion process.
Shareholders’ meetings: OP funds participate in shareholders’ meetings in Finland and abroad in line with OP Fund Management Company Ltd’s shareholder engagement principles that take responsibility aspects into account. For Finnish, but especially overseas general meetings, we make use of an international service provider (Institutional Shareholder Services) in general meeting research.
Violation of international norms: International norms, such as the UN Global Compact, define the minimum level for responsible business. In active direct investments in OP funds, OP Asset Management exercises influence on companies that are considered to have violated international norms. The funds are screened regularly for non-compliances with international standards. In the event that a non-compliance is detected, an influencing process is begun with the company in question. The aim is to make non-compliant companies change their practices and begin to comply with international norms in their operations. If influencing proves fruitless, the company may be placed on the exclusion list. We use Sustainalytics as a service provider for identifying violations of international norms.
OP Asset Management also exercises influence on certain companies in various responsibility themes, such as climate change.
More information on OP funds’ current topics relating to responsibility and shareholder engagement is available in the Responsible Investing Biannual Report. The latest report is available on the responsible investing web page.