Sustainability / Principles of Responsible Investment
In English
The Principles of Responsible Investing of WIP Asset Management Oy (hereinafter referred to as “WIP”) describe why and how WIP implements responsible investing in its operations. This Policy is approved by the Board of Directors of WIP and is based on the strategy defined by its Board of Directors.
We invest responsibly from a financial perspective, as we believe that sustainability is a prerequisite for sustainable value creation and an important factor in the effort to get the best possible return on investments. We see responsibly operating companies as being more profitable in the long term and having a better risk profile than companies that do not act responsibly.
For this reason, we have included sustainability assessment as an integral part of our investment activities, and when making investment decisions, we consider not only financial considerations, but also environmental, social, and corporate governance (so-called ESG/sustainability factors) perspectives. The principles of responsible investing are considered both in our discretionary asset management portfolios and in our mutual funds.
The portfolio management team is responsible for implementing the principles of responsible investing. To support this, WIP offers the portfolio management team the opportunity to participate in ESG trainings. WIP’s CEO is responsible for the implementation of responsible investing at WIP and reports to the Company’s Board of Directors.
When we analyze the company-specific risks of investment targets, we take responsibility factors into account as part of the whole and monitor sustainability factors alongside financial analysis and figures. To support the sustainability assessment, WIP uses ESG research and ratings produced by third parties. We also collect ESG data ourselves, for example, in connection with company meetings.
At WIP, the minimum requirement for responsibility is that the target companies in addition to legislation comply with international standards and agreements related to human rights, labor, corruption, and sustainable development. If the company persistently violates these standards, the company may be excluded from WIP’s investments by decision of the portfolio management team.
As a portfolio manager, we act as an active owner, especially in those companies in which our clients’ have significant holdings. We meet regularly with the company’s management and participate in general meetings and nomination boards. In this way, we aim to improve the conditions for the long-term success of companies. WIP’s ownership steering principles describe in more detail the ownership influence we carry out and they are available on our website.
We exclude and avoid investing in companies that make a significant part of their turnover in unethical or environmentally harmful sectors. WIP has excluded from its direct investments tobacco, cannabis, adult entertainment, and gambling companies, as well as manufacturers of weapons prohibited by international treaties (e.g., nuclear weapons, landmines, cluster munitions and chemical and biological weapons).
In addition, we have defined industries where the need for ESG monitoring has been highlighted and in which we avoid investing. These include alcohol, conventional weapons, and companies whose turnover comes from the production of fossil fuels and coal.
WIP is a member of Finsif (Finland’s Sustainable Investment Forum). Finsif promotes responsible investing in Finland by providing a networking place and a channel for acquiring information. Our goal is to play our part in strengthening the realization of responsible investing in professional financial markets.
In international fund investments, WIP only works with reputable and reliable partners, and we expect mutual funds to include responsibility as part of their investment activities. In addition to this, we require comprehensive and transparent reporting from the funds.