At Mandatum, taking sustainability aspects into consideration is a routine part of investment operations. A sustainability assessment is integrated into the investment analysis of each asset class and takes into account their special characteristics. Thus, sustainability assessments differ depending on the asset class. The assessment of sustainability factors follows the same principle as the selection of investments: the focus is directly on the company, and the decision is based on an analysis of the company and its sector.

Mandatum’s approach

1. In the investment analysis, the aim is to identify and assess all material risks and opportunities related to responsibility and sustainability for each investment object.
2. The investment object analysis considers the impacts of sustainability factors on the company’s business and financial value. In addition to the business sustainability perspective, the analysis also includes an impact assessment.
3. One of the methods used in responsible investment is exclusion. Certain industries are considered to carry more sustainability risks and cause more adverse sustainability impacts than others. Investments in industries identified as sensitive are regularly monitored in order to identify and quantify any sustainability risks.
4. Sustainability factors of investments are monitored based on several criteria depending on the asset class.
5. Together with the investee company, their identified risks related to sustainability and responsibility are mitigated. Pooled engagement is used especially if it is believed that it can be an effective means of achieving a desired change in the investee company.
6. Mandatum regularly releases sustainability reporting on its investment operations.

Management of investments

Mandatum’s Responsible Investment Policy defines the company’s responsible investment principles and is binding for the entire personnel. The policy describes the minimum level of measures to be taken to address sustainability risks and adverse sustainability impacts. Certain products may be subject to stricter principles and engagement procedures. The policy is reviewed and updated annually.

Responsible Investment Policy

Mandatum complies with its policy concerning voting rights and engagement, which presents the judicial and regulatory requirements and the related measures that Mandatum follows in order to meet its obligations concerning shareholder engagement and the use of voting rights as prescribed in the Shareholder Rights Directive and other regulatory requirements concerning the issue.

Mandatum Asset Management’s Engagement Principles
Information on Mandatum Asset Management’s Services

Policies on sustainability risks

Mandatum invests its clients’ funds responsibly, and taking sustainability risks into account is a central part of the risk management process. Mandatum has included sustainability analysis in its investment processes and monitors all of its portfolios’ investees.

Read more here.

Read more about responsible investment on Mandatum Asset Management’s website.