Responsible Investment

Nykredit's investments are always rooted in an ambition to leave a positive mark on the world we are all a part of. This is true when we invest on behalf of our clients and on our own account. Investments are key to driving green choices and sustainability. We furthermore believe that companies exercising diligence and care in respect of their customers, employees and the communities they are part of are more profitable in the long run.

Nordic Swan Ecolabelled fund

The Nykredit Invest Bæredygtige Aktier fund is the first Danish managed fund to obtain the Nordic Swan Ecolabel. The fund has outperformed the MSCI World Index (net) for three consecutive years. The fund has also been well received by our customers. Against this background, in 2020 Nykredit will launch a range of new balanced savings products, all offering an enhanced sustainability profile.

Read more about Nykredit's sustainable fund (in Danish only)

Compliance with Danish and international rules

Each quarter we screen the companies which we invest in. We look into whether their conduct respects human rights, integrates environmental considerations and opposes corruption. In short: Does a company operate in accordance with the set of rules adopted by the UN, the OECD, the EU and Denmark? If the conduct of a company is in conflict with international rules, we will make an extra effort to make the company change its course. If we are unsuccessful, the company will be excluded from our investment universe.

READ MORE ABOUT NYKREDIT'S LIST OF EXCLUDED COMPANIES

Sustainability analyses integrated in asset management

Information on companies' conduct in relation to customers, employees and society at large can impact returns. This is why we perform sustainability analyses in respect of individual companies. The analyses compare the companies with their peers in terms of environmental, social and governance factors, also known as ESG ratings. ESG ratings are today an integral part of our active asset and risk management.

READ MORE ABOUT NYKREDIT'S ESG ANALYSES

Active ownership

Nykredit's investment approach comprises more than analysis. We also engage actively in the largest companies in which we invest – and we make use of our right to vote at general meetings. This way, we can acquire as much knowledge as possible about the performance of these companies.

READ MORE ABOUT NYKREDIT'S SOCIALLY RESPONSIBLE INVESTMENT POLICY

Joint accountability

Since 2008, Nykredit has undertaken to act in accordance with the ten principles of responsibility under the UN Global Compact. Moreover, as an investor, Nykredit acceded to UNPRI's principles for responsible investment in 2009. We also have partnerships with other Danish and Nordic investors on new socially responsible investment methods through Dansif and Carbon Disclosure Project. Dansif is an association of Danish institutional investors, such as pension funds, banks and foundations.

Since 2001, the Carbon Disclosure Project has collected CO2 data from companies around the world to compare their climate efforts and to provide data to investors. Finally, Nykredit engages with Danish authorities and organisations to further develop socially responsible investment methods.

Nykredit's UNPRI reporting

UNPRI and the six principles

Danish collaboration on socially responsible investments, Dansif

UNPRI's Assessment

Nykredit's reporting on active ownership to the Committee on Corporate Governance