Nearly all economic activities may potentially have adverse sustainability impacts. At Velliv, we seek to minimise the principal potential adverse impacts our investments may have on sustainability factors such as climate, environmental and social factors.
We do so by initially excluding a number of industries and companies, while continuously screening our investments and evaluating them on a number of indicators. The screening is based on international conventions and principles of responsible corporate governance, as well as the Responsible Investment and Active Ownership Policy which sets requirements for business areas that are deemed to have a material negative impact on society and the environment, such as controversial weapons and fossil fuels.
Active ownership is an important element of Velliv’s responsible investment work. The aim of active ownership is to promote long-term value creation in the companies we invest in, to the benefit of our customers – and promote environmental and social concern. This means that if a company does not comply with Velliv’s established standards we, often along with other investors, attempt to influence the company to amend its behaviour.
Based on the results of our screening, Velliv can make enquiries and request an explanation/report from companies involved in serious controversies regarding issues with an adverse impact on sustainability. Part of this dialogue can also take place through the asset manager investing on Velliv’s behalf. If the dialogue does not produce noticeable results in the way the companies act, it may ultimately lead to exclusion from Velliv’s investment universe.
Velliv additionally exercises active ownership by voting at the annual general meetings of the companies we invest in.
Prior to selecting an external manager, a due diligence analysis is performed in which the manager's management of sustainability risks and the principal adverse impacts on sustainability factors form an integral part of the selection process. We are also in continuous dialogue with our external asset managers to understand and minimise risks in our investments, and to take maximum account of the environment and society. Some of our monitoring of the asset managers takes place through regular follow-up and checks on the asset managers’ management of ESG-related risks, compliance with Velliv’s exclusion risk, exercise of active ownership, etc.
We publish an exclusion list of the companies we have deselected as an investment option. The exclusion list is published on our website. Velliv can only ensure compliance with the exclusion criterion in investments where we have a controlling interest.
At Velliv we are attentive to the carbon footprint of our investments, and we wish to minimise the adverse impact of the carbon emissions of our investments on the climate and the environment. See more in Velliv’s climate report here (Only in danish).
Velliv’s Responsible Investment and Active Ownership Policy describes Velliv’s approach to managing any potential adverse sustainability impacts of our investment activities.
Read more about our work on negative impacts on sustainability factors in Velliv’s "Statement on principle adverse impacts of investment decisions on sustainability factors" (Only in danish).