Policy and Guidelines for Responsible Investments

Policy and Guidelines for Responsible Investments

A clear framework for our work with responsible investments
At PFA, we are working in a targeted manner with integrating sustainability and responsibility in our investment processes. We do so based on PFA’s policy for the area, which is in turn based on recognised international standards and principles.

Respect for human rights and the environment 

PFA's Policy for Responsible Investments and Active Ownership provides the framework for our work to integrate responsibility into our investment process. PFA’s Policy for Responsible Investments and Active Ownership is based on international standards and principles. This includes global guidelines on how responsible investors address human rights, climate and the environment. The work is based on:

  • The UN-backed principles for responsible investments, PRI.
  • The UN Global Compact’s 10 principles for compliance with human rights, labour rights, the environment and anti-corruption.
  • The UN’s Guiding Principles on Business and Human Rights, based on the International Bill of Human Rights.
  • The OECD guidelines ‘Responsible Business Conduct for Institutional Investors’ with a view to implement and prioritise due diligence of negative effects on society.
  • The Paris Agreement, which was adopted during COP21 with a view to reducing greenhouse gases.
  • The OECD Base Erosion and Profit Shifting (BEPS) action plan, which aims at closing tax loopholes and preventing double taxation and double non-taxation
  • The Danish Act on Implementation of the Shareholders’ Rights Directive, which concerns principles for exercise of active ownership.
The policy for Responsible Investments and Active Ownership has been adopted by PFA’s Board of Directors.
How our policy for responsible investments and active ownership works

The policy applies to all investments decided on by PFA. It is intended to ensure:

  • That we integrate climate, environmental, social and governance factors in our investment decision-making processes (also known as the ESG factors: environmental, social, governance)
  • That we screen all companies in our portfolio
  • That we engage in dialogue with companies suspected of violating or having violated the policy, thereby promoting compliance with the policy 
  • That we divest of or exclude companies in cases where the company is not interested in entering into a dialogue or if the dialogue does not result in positive changes
  • That we exclude companies without entering into a dialogue if they produce controversial armaments such as cluster bombs, anti-personnel land mines and nuclear weapons.
  • That we are transparent about our critical dialogues and exclusion lists so that the public can monitor developments and ensure that the investments we make are in accordance with our policy.





 
About securities lending

PFA/PFA Asset Management does not participate in securities lending. As a result, we also do not participate in securities lending when casting votes.
As PFA does not engage in securities lending, PFA also does not have an explicitly formulated policy for revocation. 

Read about our approach to working with responsible investments here