Corporate social responsibility 2020 - Flipbook - Page 9
INDUSTRIENS PENSIONSFORSIKRING A/S
RAPPORT OM SAMFUNDSANSVAR 2020
RESPONSIBLE INVESTMENT
to reducing carbon emissions and global
resource consumption.
Social aspects and governance
Bonds with focus on sustainability
With a major new bond investment, Industriens
Pension is further increasing climate-friendly
and socially responsible investments promoting
sustainable
developments
in
society.
Industriens Pension has placed a large external
investment mandate in the hands of PIMCO, the
capital management company, to focus on
particularly sustainable corporate bonds.
PIMCO manages an investment mandate of DKK
8.9 bn., and this is Industriens Pension's largest
external investment mandate. Funds are
invested in corporate bonds from companies
that have a relatively low environmental impact,
take social responsibility and have sound
corporate governance.
The new investment mandate is based on bonds
from companies that make significant
contributions to one or more of the 17 UN
Sustainable Development Goals, ranging from
global health and responsible production to
sustainable cities and clean water.
Moreover, the companies’ carbon emissions are
less than 50% of the mandate benchmark. Part
of the bonds fall under the definition of green
bonds which are likely to account for just over
DKK 1 bn. of the new investment.
PIMCO uses a large number of data sources to
quantify and compare the environmental impact,
social responsibility and corporate governance
of companies. Only companies with a good
“We’re changing our biggest external investment mandate because we truly believe in
the value of investments that promote sustainability at several levels. If investments are
managed by a capable investment manager, sustainability and solid, long-term
investment returns often go hand in hand.”
Anders Ellegaard, Head of Fixed Income, FinansWatch 23 June 2020
overall score in these areas are considered for
investment.
Human rights, workers’ rights, anticorruption and bribery
Social responsibility does not stop at the Danish
borders. As a global investor, we strive for a
responsible investment profile, also when we
invest in government bonds. Consequently, in
2020 we decided not to invest in countries with
major human rights and workers’ rights issues.
This may seem obvious, but there is an inherent
dilemma: if we do not contribute to financing
activities in a country, we also miss the
opportunity
to
contribute
to
positive
development that may improve the situation in
the country. The population in the country will
then stay at the same low level of development.
However, in our assessment, a number of
countries have no immediate prospect of
positive development, and consequently, we do
not invest in these countries. At the end of 2020,
21 countries were excluded from investment
because of insufficient respect for basic
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