In responsible investing the environmental, social and governance (ESG) factors are taken into account.
When making investment decisions, we take companies’ responsibility and ESG (Environmental, Social, Governance) factors into account along with the financial aspects. We believe that responsibility is a requisite for long-term value creation and therefore and important factor to achieve the best possible return for investments. We see that companies that act responsibly are more profitable in the long run and have a better risk profile compared to companies, that act in a less responsible manner. Our principles for responsible investments apply for both our discretionary asset management portfolios as for our mutual funds.
Assessment of the ESG factors is company-specific and they are incorporated into our fundamental investment analysis. Also, consideration of the ESG issues does not end when the investment decision is made. We act as an active owner especially in those companies in which our customers have considerable holdings, through e.g. voting and discussing with the management team regularly. By doing this we aim to improve the company’s conditions for long-term success.
Our minimum requirement is that the target companies comply, in addition to legislation, with international agreements and standards, regarding human rights, work force, corruption and environment. Most of WIP’s direct equity investments are in Nordic companies, which tend to have higher responsibility ratings compared to global peers. We also exclude and avoid investing in companies that generate significant part of their revenues from activities that are considered unethical or harmful for the environment.
WIP’s aim is for our part strengthen responsible investing within the financial industry. One step towards this is our membership in Finsif (Finland’s Sustainable Investment Forum ry), which is an organization that promotes responsible investments in Finland.
Read more about responsible investments at WIP