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Responsible investment

Environmental, social, and governance (ESG) issues, including climate change, have an impact on the performance, risks, and value of all companies. Taking these issues into consideration in the investment process is an important means of improving the risk-return ratio of investments, and it is a critical success factor for investment activities.

Sampo Group is committed to responsible investment and signed the UN Principles for Responsible Investment (PRI) in 2019. At Sampo Group, responsible investment is defined as an approach to managing assets so that ESG issues are incorporated into investment analysis, decision-making, and reporting. Responsible investment also includes active ownership related to ESG issues. Responsible investment practices aim to combine better risk management with improved portfolio returns, and to reflect investor values. It complements traditional financial analysis and, therefore, ESG issues are considered in parallel with other factors affecting the risk-return ratio of investments.

The sustainability field is very broad and changes rapidly, which means that the list of criteria to consider in ESG analysis is growing. Environmental factors (E) cover e.g., climate change, deforestation, biodiversity, resource management, pollution, and waste management. Social factors (S) include e.g., human rights, labour rights, supply chain management, workplace health and safety, and the company’s relationship with different stakeholder groups. Governance (G) covers e.g., leadership, compensation, audits, internal controls, and shareholder rights. 

The Sampo Group companies manage their investments according to their own responsible investment policies and provide data for group-level reporting regularly. The investment policies are updated annually and approved by the boards of directors of each Group company. 

Company-level information

If’s responsible investment policy describes If’s commitment to responsible investment and outlines the responsible investment strategies, such as ESG screening and integration, as well as the approach to active ownership. If’s personnel are bound by this policy, and it is applied to If’s and its subsidiaries’ investment activities, not including any Topdanmark company for the time being. The policy is updated annually and approved by If’s Boards of Directors.

Topdanmark has policies for responsible investment and active ownership, which describe the criteria applied to the company’s responsible investment activities. The company’s Board of Directors has the overall responsibility for the policies. Topdanmark’s investment team (front office) implements the policies in the investment strategies, and the middle office monitors investments to ensure compliance with the policy requirements. 

Hastings has a responsible investment framework, which describes its commitment to responsible investment and approach to ESG integration (incl. active ownership). The policy covers Hastings Group Holdings Limited and all its subsidiaries.  At Hastings, investment management is undertaken by Advantage Insurance Company Limited (Advantage), the insurance subsidiary of Hastings.

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