IN BRIEF

STANDARD SETTING

Our principles and expectations build on internationally recognised principles. It is important for us to promote high standards of corporate governance in order to safeguard our investments and assets. Research helps increase understanding of factors that can affect future returns.

OWNERSHIP

We are an active owner and use our voting rights to safeguard the fund’s assets. As a large, long-term investor, we engage directly with companies’ board and management.

RISK MANAGEMENT

We analyse risks relating to environmental, social and governance issues. We follow up selected issues across companies in the portfolio and attach importance to developing and improving the available data. We have formulated expectations for how companies should manage risk and report on their activities.

CHILDREN’S RIGHTS

We expect companies to protect children's rights in their operations. They should have adequate systems in place and report on their activities. We have been assessing selected companies with activities or supply chains in sectors with a high risk of child labour since 2008.

WATER MANAGEMENT

Limited supplies of water are a growing risk for many companies. We expect those in particularly high-risk industries to have a clear strategy for water management. We have been assessing companies exposed to water-related risk since 2010.

CLIMATE CHANGE

We expect companies to analyse how the challenges of climate change will impact on their operations and to develop plans and targets for managing climate risk.
We have been assessing selected companies exposed to climate risk since 2010.