Sampo Bank is part of the Danske Bank Group and complies with the Group’s policy for socially responsible investments (SRI). The purpose of the policy is to ensure that our clients’ funds are not placed in companies that violate international standards. The SRI policy applies to products for which the Group is responsible for investment management.
At the Danske Bank Group, we believe that appropriate and responsible behaviour is a precondition for long-term value creation. Therefore, the SRI policy does not conflict with the objective of generating the best possible returns for our customers.
The scope of the SRI policy
The SRI policy applies to the mutual funds administrated by Sampo Fund Management and other fund companies in Danske Group. The policy does not apply to the mutual funds Danske Fund Sustainability Equity or Danske Fund Sustainability Bond, both of which are administered by Sampo Fund Management Ltd, as these funds invest in accordance with their own investment policies in which guidelines of sustainable development have been developed further. As far as the funds are concerned, investments are made only in securities issued by companies that do not violate the standards for human rights, arms, working conditions, environment and anti-corruption. The policy also applies to the Danske Bank Group’s own strategic portfolio of securities.
Screening of investments
Ethix SRI Advisors, a consulting firm specialising in SRI, screens the portfolios on a regular basis.
The screening includes companies in the MSCI World and the MSCI Emerging Markets indices and the largest companies listed on the Nordic stock exchanges. The screening process is based on internationally recognised guidelines of the UN Human Rights Norms for Business (2003), including UN Global Compact (1999) and OECD Guidelines for Multinational Enterprises (1976). In addition, the screening includes a number of international conventions reflecting the development in the SRI field since 2003.
If a company violates the guidelines, we engage in a dialogue with the company to clarify whether it intends to change its behaviour. Depending on the result of the dialogue, we decide whether to sell or retain the investment.
Products not governed by the SRI policy
In addition to the above-mentioned sustainability funds, the Group’s Socially Responsible Investment Policy is not adhered to in its entirety in funds of funds, as the Danske Bank Group cannot influence the investment operations of third party funds in which investments are made.
In addition the policy does not apply to structured products, individual securities or derivatives, as the Danske Bank Group does not want to limit the clients’ investment options and wants to maintain a competitive and open investment universe.
Naturally, the Group’s Socially Responsible Investment Policy does not apply to contractual assets placed under the Group’s management by institutional investors in accordance with an investment policy defined in a customer-specific agreement. Danske Bank Group provides for institutional clients, however, the possibility to use SRI screening services.