In OP, responsible investing comprises the following
- Considering environmental, social and governance (ESG) factors when making investment decisions: Considering return potential and risks of ESG investments, positive and negative screening as well as exclusions.
- Active ownership: Influencing companies, participating in general meetings of shareholders and voting at the general meetings of shareholders
In addition, keeping up with international standards forms an integral part of the determination of ESG risks 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.
Our “Principles for Responsible Investment” is complemented by the “Principles for Responsible Real Estate Investment”. Our principles for responsible real estate investment encompass residential and commercial real estate and forest investments in Finland and investments in real estate funds and debts in Finland and internationally.
We provide those interested in responsible investment with savings and investment products specialised in sustainability themes. The OP-Sustainable World mutual fund is suitable for those interested in an ethical approach to investment. We offer those interested in equity investment our environmental themed funds, providing investors with a genuine opportunity to be part of the solution.
The selection of investments highlights products and services that play a crucial role in fighting various global threats. These may be related to environmental threats or social threats. Climate change and humanitarian crises involving food and fresh water shortages are examples of such threats.
ESG in real estate funds
OP Real Estate Asset Management Ltd is the portfolio manager for three special common funds and manages real estate funds aimed at institutional investors. For more information about the ESG of our special common funds, see the funds’ web pages: OP-Rental Yield, OP-Public Services Real Estate and OP-Forest Owner Fund. Enclosed is more information about open-ended venture capital funds aimed at institutional investors.
You can truly make an impact through investment
Impact investing aims at a measurable positive environmental impact and social benefit in addition to return on investments. Climate change and tensions in society are more increasingly threatening growth opportunities and long-term business conditions in the corporate sector. At the same time, new challenges also provide far-sighted investors with opportunities for good returns.
OP Finnfund Global Impact I fund has taken a step towards more sustainable investing. Finland’s first global impact fund invests in sustainable companies in the emerging market, whose services directly rise to the global challenges, such as climate change and food security while promoting gender equality.
Carbon footprints of mutual funds
We publish half-yearly the carbon footprint of OP equity funds.
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.
OP Asset Management RI Transparency Report
As signatory to the UN Principles for Responsible Investment, OP Asset Management annually reports its responsible investment practices. For 2019, OP Asset Management did very well in the world’s most significant and extensive responsible investing reporting framework, achieving the best possible level in three categories and, on the whole, achieved the level above the median score in five categories. OP Asset Management achieved the median score in the five reported categories out of ten.
To ensure that OP Asset Management’s Responsible Investment Transparency Report (UNPRI 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 below.
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 Life Assurance 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.