Annual Report 2023 (eng) - Flipbook - Side 97
Annex 1
Industriens Pension conducts quarterly monitoring of the portfolio of listed shares based on the ten principles of the UN
Global Compact, the Ottawa Convention on landmines, the Oslo Convention on cluster munitions, the Biological
Weapons Convention, the Chemical Weapons Convention, involvement in nuclear weapons and violations of trade and
arms embargoes. The screening provides input for dialogue with selected companies, and also identifies companies that
call for special attention, which may lead to the companies being excluded from Industriens Pension’s investment
universe. Industriens Pension is in dialogue with companies in the portfolio via our external cooperation partner, EOS
Federated Hermes. Moreover, we vote at general meetings of the portfolio companies in which we hold voting rights and
have exposures larger than DKK 50 mill.
In general, Industriens Pension will always seek to exercise influence through active ownership. Exclusion is considered
the last resort, if a desired behavioural change has not been achievable through active ownership. Exclusion of a
company from Industriens Pension’s investment universe is enforced by informing all relevant portfolio managers that
they are not allowed to invest in the company in question. If, at the time of exclusion, the company is part of a manager’s
portfolio, it will be divested.
Countries in which we have invested, or are considering investing, are monitored in order to ensure that our guidelines
are followed, for example with regard to sanctions adopted by the UN or the EU and to which Denmark has acceded. In
addition, countries with low ESG performance in terms of respect for human rights, climate issues, efficient and stable
governance, etc. will be excluded. In this context, Sustainalytics' Country Risk Rating is applied, and countries with a
score below 25 on a scale from 1 to 100 are excluded.
How did this financial product perform compared with the reference benchmark?
Industriens Pension does not apply specific sustainability indexes as a reference benchmark.
Reference
benchmarks are
indexes for
measuring whether
the financial product
achieves the
environmental or
social characteristics
it promotes.
How does the reference benchmark differ from a broad market index?
See the response above.
How did this financial product perform with regard to the sustainability indicators applied to determine whether the
reference benchmark was consistent with the environmental or social characteristics it promotes?
See the response above.
How did this financial product perform compared with the reference benchmark?
See the response above.
How did this financial product perform compared with the broad market index?
See the response above.
15
