SRI: influencing companies to change behavior

The challenges facing the world in its need to achieve sustainable, long-term economic growth are now great. Climate change, water shortages, poverty, energy supply and an ageing population are problems which demand new solutions, which will require big adjustments in the economy. Companies and investments will play a key role in the process.

The challenge for investors is to allocate capital to the companies which make a positive contribution to sustainable social development and those working actively on solutions to these exacting challenges. This type of investment strategy is of benefit to companies and investors, as well as to future generations.

Ethical investing

At DNB Asset Management we (1) analyze companies on the basis of the structures they have in place in relation to sustainability risks and opportunities, (2) exclude companies which do not live up to our ethical platform and (3) enter into dialogue with companies in order to bring about sustainable improvements, a process known as active ownership.


Assisting and promoting sustainable development is a common responsibility and we at DNB will do what we can to move the economy, society and the environment in a positive direction. – DNB’s CEO Rune Bjerke.





Investing ethically

Our managers and analysts are working constantly to identify risks and opportunities within the sustainability sector which are expected to be likely to have an effect on equity prices. There may be risks in companies which have a high level of carbon dioxide emissions, corruption or poor working conditions, while opportunities are identified in products which help the consumer, for example achieving energy efficiency, water purification or a healthy diet.

DNB’s ethical platform acts as a minimum standard and runs accross all our investments. We exercise caution with reference to investments which involve a risk of complicity in unethical practices, infringement of human rights and employment law, corruption and pollution of the environment. We do not invest either in companies involved in the production of weapons of mass destruction, anti-personnel land mines, cluster bombs or in companies involved in tobacco production or pornography.

As a responsible owner, we do not automatically leave a company when problems linked to sustainability arise. We will try to make the company change behaviour before blacklisting it. The Indian mining company, Vedanta, is an example of successful engagement. Vedanta was ignoring environmental issues and the needs of the local population at its mining sites in India. DNB, in concert with a group of investors, induced the company to make the shortcomings a top management concern: a person with special responsibility for sustainability issues was appointed to its management team.

Together we are stronger

DNB began its ethical capital management in 1988, which makes us pioneer in the field internationally. At that time the focus was on excluding ‘bad’ companies. Nowadays it is increasingly a matter of acting as responsible owners and working together with companies to create a sustainable business.

Cooperation with our investors is becoming increasingly important. Apart from our own team of sustainability analysts we are currently collaborating with sustainability consultants. In Sweden, DNB was the initiative behind Sustainable Value Creation, a collaboration among 15 of Sweden’s biggest investors and capital institutions aiming to induce listed Swedish companies to promote sustainable development and long term value creation.


» See also sustainable investments