We base our work on the UN’s guidelines
We base our work in this area on the UN’s guidelines for business and human rights which specify the framework for what is expected from companies in this context.
The UN’s guidelines are therefore part of our policy for responsible investments and active ownership and integrated into our investment process. Specifically, this means that we are working systematically with integrating ESG matters in our decision-making processes when it comes to companies in which we are considering investment. Among other things, we investigate the risk of the company violating human rights or labour rights and the risk of the company violating the OECD’s guidelines for multinational corporations.
In addition, we screen our investments on an ongoing basis and assess whether there is a risk of the companies violating our policy for responsibility. We do so based on three core factors: climate and environment, corporate governance and social matters, including human rights. If companies we invest in violate our policy, our priority is to engage in a critical dialogue with them rather than excluding them. This is because, as active owners, we take responsibility for the development of the companies and we wish to influence the companies to pursue a more responsible development. There may be cases, however, where the dialogue is not constructive and PFA chooses to exclude the company.
We have a public log of the companies and themes on which we are engaged in a critical dialogue, so that our customers and other stakeholders can see how the dialogue is progressing. Learn more here ›