The specific companies DNB Asset Management engages with are chosen based on our engagement strategy. The level of engagement is decided by the severity of the suspected breach, our ownership status in the company and the likelihood that our engagement will have a positive impact on the situation. Qualitative dialogue with companies is very resource and time-consuming, but in our experience and according to recent studies, this type of engagement is effective and will continue to be a priority for DNB. We use external service providers to support our work with norm-based screening of our investment universe and in a majority of our global engagement processes. We regularly receive alerts containing new information or updates on companies in our investment universe that are or might be in violation with our guidelines.
Active ownership may relate to a specific problem that a company has encountered and needs to deal with, but it can also be part of an approach where companies are encouraged to work proactively on certain issues. Sometimes we conduct our active ownership process in collaboration with other investors, e.g. within the framework of the United Nations Principles for Responsible Investment (UN PRI).
As an active owner we also participate in a unique investor collaboration for a sustainable future. The project "Sustainable Value Creation" is managed by fifteen of the largest Swedish institutional investors on the Stockholm stock exchange. The aim is to highlight the importance of companies managing sustainability issues as a prerequisite for long-term value creation in companies and long-term financial returns for investors. Read more about Sustainable Value Creation.