Equinor Asset Management AS (Equinor Asset Management) is an investment management company, licensed to offer individual portfolio management, contributing to sustainable development and long-term value creation by investing in a responsible way.
Principles for responsible investment
Background
Equinor Asset Management mainly provides investment services to Equinor Pension and Equinor Insurance. Assets under management are long-term, and diversification is one of the pillars of our investment philosophy. Our investments are therefore widely invested on a global basis.
Investment decisions are made based on analyses of markets, industries and companies. Selected strategies target creating excess returns relative to selected benchmarks. Active investment strategies include identifying the risks and opportunities arising from factors related to environmental, social and governance (ESG) matters, including climate risk. The portfolio manager’s assessment of ESG factors, in addition to other factors, provides a comprehensive picture of risk and opportunities in each investment case.
The principles for responsible investment apply to all funds, portfolios, asset classes and investment styles managed by Equinor Asset Management.
Principles for responsible investment
Principle 1
Equinor Asset Management aims to contribute to sustainable development and long-term value creation by investing in a responsible way. Equinor Asset Management shall focus on delivering the best possible returns relative to the funds' and clients' risk profiles, considering the companies’ management of ESG.
Principle 2
Companies responsible for products or behaviour that contravene Equinor Asset Management's ethically motivated guidelines for exclusion, shall be excluded from the investment universe.
Principle 3
ESG considerations shall be integrated into the investment process.
Principle 4
Equinor Asset Management shall actively manage ownership in accordance with national and international standards.
Principle 5
Equinor Asset Management will influence companies by voting on items at the companies' general assemblies.
Principle 6
Equinor Asset Management may seek to influence companies by contacting selected companies directly, either alone or together with other investors.
Principle 7
Equinor Asset Management shall participate in networks to promote good principles for responsible investment and shall contribute to the development of a well-functioning, legitimate and efficient capital market.
Principle 8
Equinor Asset Management shall be transparent, and publish information about work related to responsible investment on the website www.equinorfondene.no.
Equinor
Equinor's values and commitments shall guide how Equinor, as a capital owner and asset manager, acts as an investor and owner. Consequently, Equinor has expectations to the companies in which the funds and clients are invested.
Our expectations are based on the UN Global Compact, and we want the companies we invest in to recognize and work towards the UN Sustainable Development Goals. We consider sustainable business models to be of utmost importance for long-term value creation. We are inspired by Norges Bank Investment Management's (NBIM) expectation documents related to important topics such as human rights, anti-corruption and climate change.
Equinor is committed to conduct the business in accordance with high ethical standards by supporting several external policies, including the UN Global Compact, the UN Guiding Principles on Business and Human Rights, the International Labour Organisation's (ILO) Declaration on Fundamental Principles and Rights at Work, as well as various initiatives related to climate change and the Paris Agreement.
From the Equinor book: "Equinor's approach to sustainability lies at the core of our strategy, governance and decision-making – strengthening our resilience and informing our growth opportunities. Equinor has values that express the ideals we seek to live up to and that guide our choices, actions and how we co-operate with others. In all our business activities we comply with applicable laws, act in an ethical, sustainable and socially responsible manner, practice good corporate governance and respect internationally recognized human rights. We maintain an open dialogue on ethical issues – both internally and externally.
The way a company is managed and controlled has a major impact on its success. At its most basic, corporate governance refers to the legal and organisational arrangements that ensure the company run its business in the best interests of the shareholders.”
Framework for responsible investment
"PRI" (Principles for Responsible Investment) is a global organisation, supported by the United Nations, which is actively working to ensure a sustainable financial system.
The six Principles are:
- We will incorporate ESG issues into investment analysis and decision-making processes.
- We will be active owners and incorporate ESG issues into our ownership policies and practices.
- We will seek appropriate disclosure on ESG issues by the entities in which we invest.
- We will promote acceptance and implementation of the Principles within the investment industry.
- We will work together to enhance our effectiveness in implementing the Principles.
- We will each report on our activities and progress towards implementing the Principles
PRI has prepared a framework for responsible investment, which is divided into three main areas; investment decisions, active ownership and policy engagement. Equinor Asset Management’s implementation of responsible investment is based on this framework:
