At Velliv, corporate social responsibility and sustainability form an integral part of our business strategy, and we work actively on the sustainability risks that are a natural consequence of our activities. Based on a new EU regulatory framework – the Disclosure Regulation – sustainability information for Velliv’s investment activities is described below.
Integration of sustainability risks
At Velliv, we work actively on the sustainability risks that are a natural consequence of our activities. Velliv’s way of working with sustainability risks is set out in the responsible investment and engagement policy.
Sustainability risks are integrated into Velliv’s investment decisions and form an integral part of the investment strategy.
Insufficient integration of sustainability risks by Velliv’s portfolio companies could potentially pose a risk to investment returns. Velliv’s investments are therefore continuously monitored, as are the partners who invest on Velliv’s behalf. The integration of sustainability risks is described in more detail in the policy.
Statement on principal adverse impacts of investment decisions on sustainability factors (PAI)
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"
Products with sustainability characteristics
Our objective in Velliv is to produce optimum return, taking maximum account of the environment and society when investing on behalf of our customers. This philosophy is also crucial to our savings products VækstPension Aftryk, VækstPension Aktiv and VækstPension Index, and when you invest through our balanced funds in LinkPension. Each of these savings products promotes environmental and social characteristics, but sustainable investment is not their objective. The products are classified as Article 8 products under the EU Disclosure Regulation.
Read more about the environmental and social characteristics of the products, the investment strategy underlying them, the share of sustainable investments and the policies underlying them in the sustainability document relating to each product: