At DNB Asset Management we have strict ethical guidelines for internal operations and our associates. In addition, we aim to be a leader in the field of SRI, or Socially Responsible Investments.
DNB Asset Management has extensive experience of integrating social, environmental and ethical aspects into portfolio management. We started with socially responsible investing in 1988 – early among money managers in Scandinavia as well as in an international perspective.
Our Ethical Platform affirms that DNB Asset Management will exercise special care with respect to transactions and acts which represent a risk of involvement in unethical conduct, infringement of human or labour rights, corruption or harm the environment. DNB Asset Management does not invest in companies involved in producing, storing, or trading in anti-personnel landmines, cluster munitions or weapons of mass destruction. For companies violating other parts of the guidelines, we use active ownership in order to influence the company in a positive direction. If active ownership does not lead to an acceptable outcome, the company is excluded from investment until adequate company measures are in place.
In order to evaluate and assess the ethical performance of companies we have developed a three-step process in close co-operation with the academic world and external expertise.
Step 1: Risk classification according to objective risk criteria
Step 2: Verification through independent sources
Step 3: Direct company contact
The aim is to establish a consistent company screening. Throughout the process the team of dedicated SRI analysts use input, feedback and assistance from our in-house sector analysts. In addition, DNB Asset Management utilizes the services of external consultants in gathering company information. This proprietary model for ethical screening, also handles so-called positive criteria.
Positive Criteria In addition to so-called negative criteria (ie that companies should adhere to certain ethical requirements or pure exclusion of certain sectors) an increasing number of clients use positive criteria.
The purpose of these criteria is to support companies whose actions correspond to the investor's values and beliefs, in order to support development in certain areas or issues.
We utilize several specific criteria in our positive screening of companies in order to reach a result in unison with the values and beliefs of our clients.
- responsible for and supervises the analytical process
- the final decision-maker when it comes to ”grey-area” issues that arise in the management of our SRI mutual funds
- the body that gives recommendations in such issues to clients with segregated accounts
| International standards which lay the framework of DNB Asset Management's ethical platform: |
| OECD's Guidelines for Multinational Enterprises | Principles and standards for responsible business conduct |
| UN's Global Compact | Encourages businesses to adopt sustainable and socially responsible policies to meet the challenges of globalization |
| Ottawa Convention | Ban on all anti-personnel landmines |
| Influential initiatives which DNB Asset Management adheres to: |
| UN's PRI (Principles for Responsible Investment) | Aims to help integrate the consideration of environmental, social, and governance issues in the investment process |
| CDP (Carbon Disclosure Project) | Aims to shed light on the implications of global warming, including increasing corporate transparency of CO2 emissions |
| Joint Investor Statement on Freedom of Expression and the Internet | Aims to support freedom of expression on the Internet |
| UNEP FI (United Nations Environment Programme Finance Initiative) | Aims to develop and promote linkages between the environment, sustainability and financial performance |
