Norron’s Sustainability Policy
NORRON’S VIEW ON SUSTAINABILITY
As a fund manager, a great responsibility rests on Norron to act in the best and common interest of the fund unit owners. This means that Norron should strive to generate a market-leading risk-adjusted return for the unit holders, represent them in important matters in line with established principles for shareholder engagement, and consider environmental, social and business ethical criteria in the investment process. We believe that with the right sustainability focus, we can deliver a market-leading return and at the same time contribute to a better society. In our quest to facilitate change and social restructuring in line with long-term sustainability goals, we are keen to work sustainably with the aim of achieving actual change. As a basis for this lies our active management philosophy, which not only gives us an opportunity to deliver excess returns to our unit holders, but also allows us to interact with and influence the companies we invest in.
As part of our sustainability efforts, Norron has signed national and global initiatives for sustainable development. These are the UN PRI (Principles for Responsible Investment), the UN Global Compact and Swesif/Hållbarhetsprofilen, and by doing so, we submit to their principles and guidelines which thus become binding for the business.
An important building block for our sustainability work is the UN Principles for Responsible Investment (UN PRI). In line with these, Norron undertakes to follow their six principles:
- Norron shall incorporate ESG issues into the investment analysis and decision-making processes.
- Norron shall be an active owner and integrate ESG issues into our guidelines and principles for shareholder engagement.
- Norron shall seek appropriate reporting and sustainability reporting from the companies we invest in.
- Norron shall work to ensure that the principles are accepted and implemented in the financial industry.
- Norron shall collaborate with other investors and stakeholders on the implementation of the principles.
- Norron shall report on the work to implement the principles and our progress regarding responsible investments.
The purpose of this policy is to create a framework for responsible investment and to create long-term and sustainable development for the business, investors, partners and other stakeholders.
The policy covers all employees at Norron, and the CEO is responsible for the implementation and maintenance of the policy.
NORRON’S SUSTAINABILITY STRATEGY
Norron’s approach to sustainability is an integral part of the investment process and is based on the UN’s 2030 Agenda, which contains 17 sustainable development goals (SDGs).
In view of the UN’s global development goals, Norron has decided on the following sustainability strategy for the company and the management of the funds.
Norron’s sustainability work should be relevant
Norron will be an active owner in the transition to a sustainable economy
Norron should combine sustainability with financial returns
Norron should consider impact investing fund management
Norron shall opt out of companies that do not meet our sustainability requirements
Although Norron’s fund management strategy is primarily based on selecting companies for the funds, we exclude companies whose operations do not, by their nature, meet our sustainability requirements.
Norron should also opt out of companies that we consider do not take into account environmental aspects, where we do not see a willingness to change or where we believe that the company will not address any potential problems or shortcomings within an acceptable time frame.
We have detailed exclusion criteria on our home page. Under EXCLUSION CRITERIA in the SUSTAINABILITY section on our homepage, you can find a detailed description of the above exclusion criteria.
Norron shall select companies that meet the UN Global Compact’s criteria
For Norron to invest in a company, it is essential that the company and its operations meet specific environmental, social and business ethical criteria. The subsequent fundamental analysis of the company is then the deciding factor whether an investment in the company is made or not. Norron applies the following criteria for selecting companies for the funds, which follow on from our obligations as a signatory to the UN Global Compact;
- The company shall support and respect international human rights within the company’s sphere
- The company must ensure that it is not involved in human rights violations
- The company must maintain freedom of association and recognize the right to collective bargaining
- The company must have eliminated all forms of forced labor
- The company must have abolished child labor
- The company must have abolished discrimination in terms of duties and recruitment
- The company must support the precautionary principle regarding environmental risks
- The company should take initiatives to create greater environmental awareness
- The company should encourage the development of environmentally friendly technology
- The company must combat all forms of corruption, including extortion and bribery
Norron shall consider the EU taxonomy in their environmental sustainability work
Norron’s sustainability work will be overseen by Norron’s Ownership & ESG Council
FOLLOW-UP AND PUBLICATION
In order to increase the awareness and commitment of investors and the society at large, Norron believes that transparency within the sphere of sustainability is important. Norron will therefore provide information relating to this work on the website, report on the development and the result of the sustainability strategy and its goals on the website and in relevant documents. Norron will also compile information on its work relating to responsible investments in each fund according to the UN PRI in an annual report. This will be published on the website. Furthermore, Norron will also ensure that requests from partner organisations are accurate and completed on time.