Socially Responsible Investments
In Nykredit's investment universe, we always strive to make a positive contribution to the world that surrounds us all. Both when we invest our customers' money and our own. 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. It is simply common sense that companies that want to part be of the solution instead of being part of the problem make for better investments.
Compliance with Danish and international rules
Each quarter, we screen the companies that 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.
For further information, please refer to 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 the companies in our investment universe. 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 management and risk management.
Nykredit seeks to be an active owner
Nykredit's investment approach comprises more than analysis. We also maintain active dialogues with 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 on the performance of these companies.
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, enabling them to compare their performance with peers and investors to make informed decisions.
Finally, Nykredit takes active part in the dialogue with Danish authorities and organisations on the improvement of socially responsible investment methods.