Policy on responsible and sustainable investment
The objective of this policy is to describe the approach of the associations managed by Jyske Invest Fund Management to responsible and sustainable investment and their communication of the issue. The policy covers Investeringsforeningen Jyske Invest, Investeringsforeningen Jyske Invest International, Investeringsforeningen Jyske Portefølje, Kapitalforeningen Jyske Portefølje and Kapitalforeningen Jyske Invest Institutional (hereinafter referred to as Jyske Invest).
Update, monitoring, changes and approval
The policy is to be updated when necessary and at least once every 12 months. The Head of Investment Controlling shall be responsible for policy updates. The policy and changes to this is subject to approval by the Supervisory Board of the associations covered by it, and the Supervisory Board of Jyske Invest Fund Management A/S shall be informed in the event of changes.
Policy for responsible and sustainable investment
It is the responsibility of Jyske Invest to safeguard the interest of its investors. We consider it our primary task to optimise the return of our investors, and in actual practice this is implemented by involving sustainability-related aspects in the investment decision-making process.
Hence, Jyske Invest assumes corporate social responsibility in connection with investments, and therefore environmental, social and corporate governance (ESG) issues are included as a parameter in our investments. In addition, we focus on active ownership, norm-based and activity-based screening as well as ESG integration in the investment decision-making processes.
The basis of Jyske Invest's work with responsible investment is the UN PRI’s Principles for Responsible Investment (PRI), which the main distributor of the associations and the investment adviser, Jyske Bank A/S, has signed. UN PRI is a joint declaration on taking corporate social responsibility in connection with investments and compliance with six central principles for responsible investments.
On an ongoing basis, we are working to strengthen the ESG integration in or investment processes.
A norm-based screening of the investments of Jyske Invest is performed on an ongoing basis. Norm-based screening means that companies are on an ongoing basis identified that seriously violate international norms or conventions within areas such as environmental protection, labour rights and human rights.
In order to identify violations, screening is performed of international norms and conventions such as:
UN Global Compact
A UN initiative that lays down ten general principles for businesses’ work relating to the environment, anti-corruption, employee rights, human rights, etc.
OECD guidelines for multinational companies
These lay down a number of principles on responsible corporate behaviour, of which the most important ones are human rights, the environment, working conditions and anti-corruption.
UN Human Rights Declaration
This lays down a ban on forced labour and discrimination, the right to freedom of speech, etc.
ILO labour market conventions on dignified conditions for workers Conventions on the abolition of child labour, discrimination, forced labour and the right to organise and collective bargaining.
Often we find that dialogue and commitment form the most appropriate approach with a view to making the company in question change its behaviour.
Advice from the Committee for responsible and sustainable investments plays a pivotal role in the handling of general issues relating to responsible and sustainable investments. This committee was established at the associations’ primary investment adviser Jyske Bank A/S. The committee meets on an ad hoc basis over the year and can at short notice decide on new sustainability-related issues relating to SRI, ESG, Impact and sustainability. The Committee for responsible and sustainable investments informs annually the Supervisory Board of Jyske Invest of its activities.
Jyske Invest performs screenings of companies in which investments are made based on the activities they pursue. The associations have decided not to invest in a number of companies that do not match the principles of this policy and for which there are no prospects that dialogue will result in any change of behaviour. Hence the associations consistently exclude companies that conduct activities relating to controversial weapons: anti-personnel mines, cluster weapons and nuclear weapons (where the principles of the UN Non Proliferation Treaty are not met).
In addition, Jyske Invest offers bond and equity funds focusing especially on corporate social responsibility and sustainability, and in connection with which activity-based screening is carried out to a greater extent. These funds exclude companies that produce or distribute weapons, alcohol, tobacco, gaming or adult entertainment as well as companies that extract, develop or refine fossil fuels (coal, oil and gas).
We do not make share lending transactions.
Jyske Invest strives to make ESG issues an integrated part of the investment decision-making processes that form the basis for the associations’ investments. Therefore non-financial key figures, including the companies’ ability to handle ESG issues are integrated in the investment processes for equities and corporate bonds. The ESG integration is based on a sustainability rating made by MSCI.
All funds of Jyske Invest are subject to the principles of this policy, but in addition funds with special focus on ESG integration are offered, and therefore these are subject to special and more stringent requirements of sustainability and responsible investment. We strive to find sustainable solutions, which go hand in hand with the objective of obtaining the best possible return and a wide investment universe.
We consider active ownership a key element of sustainable investment management. By active ownership is understood that investors attempt to affect the companies in investments are made.
As an active investor Jyske Invest is, for instance, through an external adviser, in ongoing dialogue with companies about activities violating international conventions and norms, including cases relating to human rights, employee rights, environmental issues and business ethics. Jyske Invest cooperates with other investors to practice active ownership in relation to companies with ESG challenges in order to achieve as much influence as possible. If a company cannot be affected through dialogue, it will typically be excluded from our investment universe.
In certain situations, Jyske Invest also practices active ownership through the exercise of voting rights. This will typically take place in dialogue with other investors to achieve the highest possible effect of the voting. For more information on the associations’ voting policy, please see separate policy on voting.
Special information on government bonds
ESG issues are also considered in relation to investment in government bonds issued by emerging market countries. The assessment of ESG issues is based on data from MSCI that overall assess the countries on the basis of a number of ESG issues. Based on the analysis, the countries are given an overall ESG rating in the range of AAA and CCC.
In addition, the Jyske Invest associations’ investment in government bonds complies with international sanctions and bans adopted by the UN and the EU.
You can on an ongoing basis stay informed of the sustainability profile of the equity funds of Investeringsforeningen Jyske Invest. We strive to expand regularly the information about funds’ sustainability profile to cover other funds and associations.
This policy is based on Investering Danmark’s (Danish Investment Association) sector recommendation for the minimum handling of sustainability issues. We are on an ongoing basis working to strengthen our handling of sustainability issues.
The Jyske Invest associations communicate in annual and interim reports about the latest development in the area. In these reports the Jyske Invest associations communicate the status of the work on responsible and sustainable investments as well as the work on active ownership and report on the number of cases and the development.
Extracts from this policy is available on the associations’ website.
Last Update 03.03.2021