Norm-based exclusions (conduct and non-conduct based)
It is of fundamental importance that the companies we invest in follow applicable laws, as well as international laws, norms and conventions.
On the basis of their conduct, we exclude those:
- Contributing to serious and systematic breaches of international law and human rights
- Involved in systematic corruption and financial crime
- Involved in serious environmental damage
- Companies that produce or sell controversial weapons, such as nuclear weapons, land mines, cluster munitions, biological and chemical weapons (non-conduct-based norm-breaches)
Companies will be excluded if the breaches are considered serious and the risk of a breach occurring is assessed as high.
Where our Risk and Ownership team assess that a company falls into the above categories, they present an anonymised case along with their recommendation to the relevant internal investment committee or investment office, which then makes the final and binding decision.
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Storebrand will not invest in companies that contribute to serious violations of international law, including humanitarian law and basic human rights.
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Storebrand will not invest in companies that are involved in grand corruption. The criterion which includes the United Nations Convention against Corruption. Consequently, allegations of giving or receiving improper advantages - either in the private or public sector - are scrutinised. The criterion also covers other serious financial crimes, such as tax evasion, accounting fraud and embezzlement.
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Storebrand will not invest in companies involved in activities that cause serious environmental damage. The criterion includes the UN Convention on Biological Diversity and the UN Framework Convention on Climate Change.
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Storebrand will not invest in companies involved in producing or servicing controversial weapons, including but not limited to, nuclear weapons, chemical weapons, biological weapons and land mines. A company can also be exclused when subsidiaries controlled by the company, typically through ownership of 50% or more, are in breach of the criterion.
Product and activity-based exclusions
Storebrand AM’s product and activity-based exclusions are firm-wide exclusions and are applicable to all funds. These exclusions pertain to investments in companies within certain single product categories or industries, or activities that are unsustainable. These products or industries are associated with significant risks and liabilities from societal, environmental or health related harm. In these product categories there is also limited scope to influence companies to operate in a more sustainable way, hence limited possibility to use engagement and escalation as tools for influencing changes in practices. This includes companies with*:
We therefore exclude companies with:
- Companies with more than 0 percent of revenue from tobacco production or cultivation and more than 5% from distribution
- More than 5 percent revenues from recreational cannabis
- More than 5 percent of revenues from coal-related activities
- More than 5 percent of revenues from oil sands
- Companies that are involved in deforestation or conversion of native ecosystems through severe and/or systematic unsustainable production of palm oil, soy, beef and leather, timber, cocoa, coffee, rubber and minerals
- Involvement in systematic lobbying against climate agreements
- Operations in biodiversity-sensitive areas
- Involvement in deep sea mining
- Involvement in mining with marine disposal
- Control or ownership by excluded states
*Revenue data is based on data from various data providers which may have differentiating methodologies and calculations and where there can be a lag in data. Overrides for exclusions can therefore be applied when there is uncertainty about data accuracy, or outdated or incorrect data. This is backed by in-house research.
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Storebrand will not invest in companies where the sale of tobacco or components exclusively designed for such products, exceeds five percent of total sales. Tobacco products are defined as those entirely or partly made from tobacco leaf and our exclusion applies to producers and distributors as well as companies involved in the cultivating or processing of tobacco.
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Storebrand will not invest in companies where the sale of cannabis products for recreational use, or components exclusively designed for such products, exceeds 5 percent of total sales. The criterion applies to producers and distributors as well as companies involved in the cultivating or processing of cannabis for recreational use, but does not apply to income from cannabis products that are not classified as recreational.
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Storebrand will not invest in companies with more than 5 per cent of revenues from coal-related activities.
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Storebrand will not invest in companies with more than 5 percent of revenues from oil sands.
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Companies that are involved in deforestation or conversion of native ecosystems through severe and/or systematic unsustainable production of palm oil, soy, beef and leather, timber, cocoa, coffee, rubber and minerals.
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Companies involved in lobbying that deliberately and systematically work against international norms and conventions, such as the goals and targets enshrined in the Paris Agreement or the Global Biodiversity Framework. -
Companies with operations in biodiversity-sensitive areas.
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Companies conducting deep sea mining activities.
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Mining operations that conduct direct marine or riverine tailings disposal.
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State-owned and controlled companies (from states excluded under sovereign bond criteria).
Additional product-based exclusion criteria
For some selected products and funds, Storebrand AM has introduced additional requirements. In these cases, we also exclude companies with:
- Involvement in fossil fuels (coal, oil and gas) PAB-aligned:**
- Large fossil reserves
- More than 5% revenue from production and/or distribution of alcoholic beverages
- More than 5% revenue from gambling operations or ownership of gambling establishments.
- More than 5% revenue from the production and/or distribution of conventional weapons/ defense contracts
- More than 0% revenue from the production of pornographic material or active marketing and 5% sales of pornography.
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The fossil fuel criteria is aligned with the Paris Aligned Benchmark (PAB) criteria. For coal-related revenues from prospecting, mining, extraction, distribution, or refining, the threshold value is 1%.
In alignment with the PAB criteria, companies classified outside of the fossil industry, such as in the utilities sector, with revenues marginally above 5 percent, will be evaluated and can be exempt for exclusion if they have credible transition plans and fulfill certain requirements, such as having set and validated science base targets, if these targets are in line with 1.5C scenario, and if the company is not excluded under any other norm or product-based exclusion criteria.
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Large fossil reserves, more than 100 million tons of CO2 equivalents.
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Storebrand will not invest in companies with more than 5% of revenues from alcohol.
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Storebrand will not invest in companies with more than 5% of revenues from gambling.
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Storebrand will not invest in companies with more than 5% of revenues from defense contracts and conventional weapons.
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Storebrand will not invest in companies with any revenues from the production of pornographic material or from marketing and sales of pornography.