The Fund is a passive index fund. It promotes environmental and social characteristics by using an index based on environmental, social and governance (ESG) analysis while excluding certain investments.
Negative screening: As the Fund is a passive index fund, the Fund manager cannot make individual exclusion decisions. The Fund is based on an index which excludes companies with connections to the production of controversial weapons. The index also excludes companies which have violated international standards (UN Global Compact and OECD guidelines for multinationals) and companies which have committed very severe ESG violations.
Use of ESG data in the investment analysis: The benchmark index considers companies’ ESG rating and emphasises companies with better ESG ratings.
Shareholders’ meetings: The Fund votes in shareholders’ meetings through a service provider in line with OP Fund Management Company Ltd’s shareholder engagement principles that take responsibility aspects into account.
Assessing good governance: The Fund is based on the MSCI ESG Universal Index, using both the MSCI ESG Rating and the MSCI ESG Rating Trend data and gives weight to those companies with better ratings. The level of corporate governance is included in the ESG Rating.