Maj Invest is a signatory to the UN-backed Principles for Responsible Investment, PRI, which outlines our commitment as an asset manager. In our role as asset manager, we believe that environmental, social and governance (ESG) factors can affect the performance of the investment portfolios. Therefore, and where consistent with our responsibilities, we are committed to incorporating ESG factors in-to our investment criteria. Read our Responsible Investment Policy here.
Screening and engagement
On behalf of Maj Invest, the consultancy company Sustainalytics (prev. GES) continuously monitors and screens all companies included in the listed equity and fixed-income portfolios managed on behalf of clients. This screening is done to observe the standards comprised by widely recognised international conventions and guidelines relating to human rights, labour rights, environmental responsibility and corporate governance, also known as ESG relations (environmental, social, governance). Maj Invest has been collaborating with Sustainalytics since 2005.
Sustainalytics regularly screens more than 20,000 companies for any violations of widely accepted international conventions and guidelines relating to the environment, human rights and business ethics. On the basis of this screening Sustainalytics keeps an observation list of potential incidents, and in the case of clearly documented violations of guidelines, Sustainalytics will warn companies and enter into a dialogue with the respective companies.
In addition, on a quarterly basis Sustainalytics makes an explicit screening of the companies in which Maj Invest has invested on behalf of clients. If these companies come into conflict with international conventions, Maj Invest will via Sustainalytics seek to enter into a constructive dialogue with the aim to change the company’s conduct together with other institutional investors through the Sustainalytics' Engagement Forum.
Repeated criticism of a company’s lack of responsibility when it comes to violations of international conventions and guidelines without sufficient responsiveness from company management will normally result in Maj Invest selling its stake in the company.
Thus, ESG issues are an integrated part of the general analytical work in relation to Maj Invest’s equity and fixed-income investments as laid down in the PRI, among other things. As part of the responsibilities as a signatory to the PRI, Maj Invest makes a report on responsible investment annually. Please read the 2020 Transparency Report here.
EU SFDR - Increased transparency in sustainable investments
Principal adverse sustainability impacts statement
Maj Invest provides investment advisory services and portfolio management and is subject to elements of SFDR as a Financial Market Participant. Maj Invest offers mutual fund products. As the requirements concerning sustainability classification and reporting enter into force and are incorporated, Maj Invest will to a greater extent be able to apply sustainability factors to investment advisory services and portfolio management. Maj Invest's investment teams select investments in their investment advisory and investment decision processes according to a fixed process. Sustainability factors may be one of several factors in the overall assessment, depending on the individual investment strategy. Maj Invest's investment advisory/investment decision process typically entails norm-based screening via external consultants and the exclusion of investments based on ESG factors, as well as engagement processes via an external consultant. Maj Invest aims for the products/services offered by Maj Invest to include products/services with a higher sustainability classification (Article 8 or 9).