We base our work on the UN’s guidelines
We base our approach on the UN principles
Our starting point for this is the UN Guiding Principles on Business and Human Rights, which set out the expectations placed on companies in this area.
The UN Guiding Principles have therefore been incorporated into our Policy for Responsible Investments and Active Ownership and integrated into our investment process. Specifically, this means that we work to integrate ESG into the decision-making processes relating to companies we are considering investing in. Among other things, we assess the risk of the company violating human rights or labour rights, as well as the risk of the company violating the OECD Guidelines for Multinational Enterprises.
In addition, we continuously screen our investments and assess whether there is a risk that the companies are in breach of our Policy for Responsible Investments and Active Ownership. We do this based on the three key factors: climate and the environment, corporate governance and social factors, including human rights. If companies in which we invest breach our policy, we prioritise engaging in critical dialogue rather than excluding them. We do this because, as an active owner, we want to promote progress within the companies and seek to influence them to address the identified challenges. However, there may be cases where the dialogue is not constructive and PFA chooses to exclude the company.
We maintain a public log of the companies and topics on which we are engaging in critical dialogue, enabling our customers and other stakeholders to follow the progress of the dialogue.
