New policy for socially responsible investmentsThe Danske Bank Group has introduced a new policy for Socially Responsible Investments – SRI. The policy is to ensure that the Group does not invest customers’ assets in companies that violate internationally recognised standards for human rights, arms, working conditions, environment and anti-corruption.
The policy applies to the Group’s own products, where the Group manages investments on behalf of customers.
“We have decided to introduce the SRI policy to make sure that customers can feel comfortable in placing their investments with the Group,” says Niels-Ulrik Mousten, Senior Executive Vice President, Danske Capital.
The decision to introduce an SRI policy is closely coupled with the Group’s conviction that appropriate behaviour is a precondition for long-term value creation in a company.
“Therefore, the SRI policy does not conflict with the Group’s objective of generating the best possible returns for our customers,” says Niels-Ulrik Mousten.
Dialogue with companies
The Swedish company Ethix SRI Advisors monitors whether the portfolio companies meet the required standards.
If a company is accused of involvement in a sustained and severe violation of the guidelines, Ethix will investigate the accusations. Through the entire process Ethix seeks a dialogue with the company and other relevant parties. The dialogue entails an opportunity to hear the companies’ own description of the case and investigate whether the company is taking initiatives to stop the violation and thus prevent any reoccurrence.
Within the Danske Bank Group an SRI Board has been established. Its members are the CEO’s of Danske Capital, Danica Pension and Danske Invest together with representatives from Corporate Responsibility and the Group’s SRI function. The SRI Board receives the results of Ethix’ analyses and decides whether the securities from a given company are to be excluded or whether the dialogue with the company is to be continued.
“The dialogue is to clarify whether the company is planning to change its behaviour in respect of the case in question. Depending on the outcome of the dialogue, we decide whether we will sell or retain the investments in the company,” says Niels-Ulrik Mousten.
Read more about the SRI policy on www.danskebank.com/responsibility