Conduct-based exclusions
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 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.
Product-based exclusions
Storebrand has also chosen to exclude investments in companies within certain single product categories or industries that are unsustainable as they are associated with significant risks and liabilities from societal, environmental or health-related harms. In these product categories, there is also limited scope to influence companies to operate in a more sustainable way.
We therefore exclude companies with:
- Any revenues from controversial weapons
- 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
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Storebrand will not invest in companies involved in producing or servicing controversial weapons, inclduing but not limited to, nuclear weapons, chemical weapons, biological weapons and land mines.
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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.
Business practices
We exclude companies based on certain unsustainable business practices, as well as those that deliberately and systematically work against the goals and targets enshrined in the Paris Agreement. We also do not invest in government bonds or companies that are legally or effectively state-controlled entities.
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Storebrand will not invest in companies that conduct lobbying against scientifically based climate policies such as the Paris Agreement.
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Storebrand will not invest in companies directly involved in deforestation, converting natural ecosystems or associated human rights abuses, producing palm oil, soy, cattle, timber, pulp and paper, cocoa, coffee, rubber and minerals.
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Storeband will not invest in companies involved in deep sea mining, marine riverine tailings disposal and arctic drilling or those operating in ecological sensitive areas.
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We will not invest in government bonds or companies that are legally or effectively state-owned.