Transparency of Sustainability risks
NCP’s Responsible Investment Policy outlines the organisation’s strategy covering all AUM with the conviction that companies that have integrated a sustainability strategy into their business strategy is better equipped to create long-term value, and thus will be more attractive investments.
Integrating sustainability risks into investment decisions will likely have a positive impact on the return of NCP’s funds as it adds an additional layer of qualitative analysis, futureproofs the funds as well as adds a competitive advantage in relation to our peers. As a Nordic asset manager, understanding sustainability risks and environmental, social and governance (ESG) factors allows NCP to reduce risks and capture opportunities in investment management. Incorporating ESG analysis into the investment decision-making process supports NCP’s core business model and strategies as well as ensures optimisation of investment opportunities. By analysing investments from an ESG perspective, NCP extends its understanding of risks and seizes potential business opportunities for the benefit of its investors and for the development of sustainability in society at large.
NCP has a thorough due diligence process for integrating sustainability risks into the investment decision-making process. The process includes an ESG Disclosure list that is tailored for each company outlining the company’s material ESG factors as well as general ESG factors and, is partly based on the SASB’s Industry Standard as well as in-depth research. These material ESG factors also constitute the main sustainability risks for each company. To be considered for an investment, a company needs to demonstrate that it has a strong understanding of its exposure to these risks as well as its impact on the environment and society.
All NCP funds comply with our basic sustainability criteria and therefore do not invest in companies engaged in activities that violate international guidelines and conventions or companies that are active within oil and gas, the weapon industry, pornography, tobacco, gambling, or have more than 10 percent from alcohol sales.
You can find our Responsible Investment Policy here, with a detailed description of how we work with sustainability and sustainability risks across our investments.