Download Storebrand`s environmental and social investment criteria

Storebrand's environmental and social investment criteria
As the largest life insurance company and pension fund manager in Norway, Storebrand
Livsforsikring AS (life insurance) recognises its responsibility to contribute to sustainable
development. In March 2001 Storebrand introduced environmental and social criteria for the
management of its life insurance customers' investments. These criteria apply to the investment of
policyholders' funds in the stock market.
Corporate Social Responsibility is becoming an ever more important concept. Storebrand has
established a 10-point action plan for Corporate Social Responsibility, and the introduction of
Socially Responsible Investments (SRI) is one of its 10 priority targets.
The use of SRI criteria for investment is rapidly moving up the agenda both in Norway and
internationally. In the USA, for example, one out of every eight dollars managed for investors is
invested on the basis of SRI criteria. Storebrand is the first company in Norway to introduce this
approach, and we know from market research that this is of interest to our customers and that they
welcome the use of ethical criteria for the investment of their pension assets.
The savings and pension assets of Storebrand's life-insurance customers are managed by
Storebrand Kapitalforvaltning (asset management). The total value of these assets varies with
market conditions, but represents around NOK 111 billion. SRI criteria will initially be used for
investing the share portfolio, which amounts to around NOK 30 billion.
Storebrand first introduced environmental investment criteria with its Storebrand Principle Global
Fund in 1996, and the performance of this fund demonstrates that this approach helps to produce
a competitive long-term investment return.
Equally good - or better - investment return
The biggest challenge when using environmental and social investment criteria is gaining access
to the information needed to evaluate individual companies. We will start by using criteria that
we and our customers believe are important and which can be properly monitored. Storebrand
Livsforsikring aims to be even more focused in its choice of criteria in the long-term, and we will
gradually address a broader range of issues.
Storebrand’s use of environmental social criteria does not cause any increase in the charges to
customers for investment management. These criteria are applied in addition to the existing
financial criteria, and the target is to provide an equally good or better return on investment.
Which criteria?
As far as the Tobacco Industry is concerned, the criteria mean that we will not invest in
companies that produce or distribute tobacco products or in any company which generates more
than 10% of its sales or income from the tobacco industry.
In respect of Landmines, we exclude any company that fails to do everything possible to prevent
their products and services being used in the production, distribution or sales of landmines.
In terms of Human rights, we exclude any company associated with serious breaches of human
rights such as child labour, slavery or forced labour, inappropriate use of security guards towards
workers, infringement of the rights of indigenous peoples or restrictions on the freedom to
organise employee representation. Decisions on exclusions in this category will be reached in
collaboration with humanitarian organisations.
For our European share portfolio, we only invest in European chemical companies if their
environmental and social results are among the top 30% by comparison with chemical companies
around the world. We will extend this approach to companies outside Europe in due course.
For more information about Storebrand's commitment to corporate social responsibility, see our
web site at www.storebrand.no/csr.
Contacts:
Caroline Dale Ditlev-Simonsen, Head, Corporate Social Responsibility, VP
Email: [email protected]
Tel: +47 22 31 19 33 Fax: +47 22 31 52 63
Sarita Bartlett, Head CSR Research, Storebrand Asset Management
Email: [email protected]
Tel: +47 22 31 10 18
Fax: +47 22 31 23 55