Realdania is a responsable investor and we continue to develop the ESG framework. In our view to optimize the risk-adjusted return and to be a responsible investor is coincided. We make sure to find the balance between generating the returns and exhibiting responsability as an investor. This applies for our internal investments and for the investments made by the assets managers we work with with.
We have set the general framework for our approach to responsible investments in the Investment Strategy 2020-2026. The strategy contains targets and framework for how we want to include environmental, social and governance-related (ESG) aspects in our investment policies, philosophy and processes.
More specifically we have been working on the basis of an updated policy that outlines precise ESG responsibility framework for our non-philanthropic investment activities.
We continue to develop the framework for being a responsible investor. Hence, we have lately earmarked a part of our assets to support one or more philanthropic targets defined via selected UN sustainable development goals via mission related investments. We have also increased our ambition regarding our carbon footprint in order to reduce this over time. Furthermore, we have decided to divest from companies producing tobacco.
We screen our non-philanthropic investment assets continuously in order to make sure they do not conflict with the responsible investor framework. The screenings are performed by the external consultant Sustanianlytics and includes all listed equities and bonds. Expansion of the screening activities will continue and ultimately it will cover all the main asset classes.
As a responsible investor, we want to contribute actively to change conditions that conflict with our framework for responsible investments. Therefore, together with other investors, we endeavor to influence the way companies work with respect to legislation, employee rights, the environment, controversial weapons and corporate governance. This is also called ‘engagement’.
This approach means that we do not use negative lists or pre-screening in connection with our investment activities. As a result, either directly or via external asset managers, we can potentially invest in companies that we subsequently suspect of conflicting with the framework we have set for responsible investments.
If we get such a suspicion, we will contact the company via our external consultant Sustanianlytics. If, over time, our engagement fails to work, the ultimate consequence will be that we dispose of our investment. However, our fundamental belief is that it is better to try actively to push the company to find a solution to problems rather than ignoring the issues.
Requirements for asset managers
We require our external asset managers to be signatories of Principles for Responsible In-vestments (PRI), to incorporate similar processes for responsible investments, or in some other way to document behavior in accordance with PRI.
We regularly follow up on the activities of all our external asset managers to make sure that they are constantly aware of our ESG framework . We also ensure that we monitor that our asset managers comply with their own internal processes for responsible investments.
Returns from our non-philanthropic investment activities form the foundation for our philanthropic activities, as well as for our associa...
Our investment strategy secures a framework for maximazing the risk-adjusted returns to support our philanthropic work and to protect our...