OP's responsible investment involves
- the consideration of sustainability issues in investment decision-making
- active ownership
- positive and negative screening
- the monitoring process of compliance with international norms and engagement.
We believe that considering the sustainability of investments and encouraging companies towards increasingly sustainable business will contribute to the achievement of long-term investment objectives. Sustainable investment does not therefore mean giving up good return potential, as sustainable companies have at least as good opportunities as other companies to generate added value to investors.
Carbon footprints of mutual funds
We publish half-yearly the carbon footprint of OP equity funds. Alongside with the publication of carbon intensity figures, OP provides investors with this new carbon risk indicator to support them in selecting a mutual fund.
Responsible Investing Transparency Report
You can read more about how we implement responsible investing in various fields in a report created by OP Asset Management.
Critical assessment of OP Asset Management's 2017 UN Principles of Responsible Investment Transparency Report
To ensure that OP Asset Management’s UN Principles of Responsible Investment Transparency Report and the processes described in it comply with UNPRI’s instructions, OP Asset Management has requested a third party to perform a critical assessment of the 2017 report. KPMG Oy Ab’s final statement of this critical assessment is available here.
Fund-specific ESG reports
A fund's responsibility analysis presents the fund from the ESG perspective. ESG means taking the environmental, social and governance criteria into account. A fund's ESG assessment is based on an analysis of the companies in the fund's portfolio. A report is published for a fund if the ESG analysis available covers more than 50% of the portfolio investments. You can find fund-specific ESG reports on each fund’s own website under Documents.
Exclusionary screening, or negative screening
In the principles for responsible investment, we describe the criteria whereby we can exclude companies from our active investments. Such exclusion is typically based on operations contrary to international norms such as OECD guidelines, on the manufacture of certain weapons or carbon risk.
Keeping up with international norms
In monitoring the adherence to international norms by the investee companies, we make use of an independent partner (GES Investment Service), which produces continuous analyses of the fulfilment of international norms by investee companies. Additionally, GES Investment Service checks all of OP's asset management and fund management companies' investments twice a year for violations. The screening covers direct and active equity and corporate bond investments managed by OP's asset management company, but excludes, for example, index-linked products and mutual funds managed by external portfolio managers.
Shareholder engagement principles
This page contains links to the shareholder engagement principles of OP Fund Management Company Ltd, OP cooperative banks functioning as investment managers and OP Asset Management Ltd. These shareholder engagement principles are approved by the respective companies’ boards of directors. Reports on shareholder engagement actions are published on this page every year. In addition, OP Fund Management Ltd publishes its shareholder engagement information in OP Mutual Funds’ half-year and annual reports and prospectus.
OP Asset Management Ltd
OP Fund Management Company Ltd
OP cooperative banks
OP Property Management Ltd
OP Property Management Ltd doesn’t draw up or publish shareholder engagement principles because the funds under its management don’t invest their assets in any company’s shares traded in a regulated market.