Integration of sustainability risks

At PFA, we believe that accountability and good returns are increasingly interlinked – not least from the point of view of a long-term investor. The funds in PFA Plus are invested based on PFA’s general principles for active ownership and responsible investments. 
It is not just about making our customers’ investments grow – it is also about making them grow in the right way.

 

Integration of sustainability risks in investment decisions

PFA integrates sustainability risks in its investment decisions in the same manner as other risks. All of PFA’s investments have exposure to sustainability risks. A sustainability risk is an environmental, social or governance event or circumstance that, if it materialises, may have a significant negative impact on the value of the investment. As with other risks, sustainability risks are incorporated into the investment processes - PFA seeks to identify and prioritise potential negative sustainability risks in our investments. This is done by using relevant adjustments based on asset classes and the opportunities and data that PFA has available.
 
When PFA works with sustainability risks then, among other things, we do due diligence based on available data, we use ESG analyses and we use the knowledge we have about special issues in certain sectors and individual companies, projects or countries. In addition, PFA’s principles for responsibility in the investment process is based on the following factors:
 
  • The integration of climate and environmental considerations
  • The integration of responsible tax practices
  • Dialogues with our business partners about responsible behaviour
       

        

 

Integration of sustainability risks in the remuneration policy

At PFA, remuneration (together with other employment terms) should reflect the customers’, the PFA Group’s and the company’s interests and promote the long-term objective of creating value for customers as well as promoting sound and efficient risk management. Consequently, the PFA Group’s remuneration policy also considers sustainability risks. 

Sustainability risks are integrated in remuneration in the same way as other types of risks identified for the PFA Group. The PFA Group's general remuneration structure reflects the Group’s established strategy Commercial Responsibility 2023 through to 2023, including the overall investment and risk strategy and identified risks such as operational, market, sustainability and reputational risks. 

Sustainability risks are also incorporated as an integral part of the policy for active ownership and responsible investments, which the relevant business units of the PFA Group are liable to comply with. Compliance with the PFA Group’s guidelines are, together with the other employment terms, an important part of the remuneration principles in the PFA Group. The level of importance which should be attached to the sustainability risks as part of the remuneration policy will depend on the business area of the individual business unit.