As part of Storebrand's commitment to have net-zero greenhouse gas (GHG) emissions across its investment portfolios by 2050, the policy will strengthen engagement and divestment initiatives as part of wide-ranging strategies and investment methods.
The policy, which applies to all our funds, will see SKAGEN using our ownership position to stimulate climate practices at portfolio companies. We believe that engagement is one of the best ways to effect change and we will seek to build positive dialogue with companies and support their transition to low carbon and climate-resilient activities, both individually and through investor initiatives such as the PRI and Climate Action 100+.
SKAGEN recently became a supporter of the Transition Pathway Initiative (TPI), an investor-led initiative to assess companies’ preparedness for the transition to a low-carbon economy. This will be central to our engagement with companies that are responsible for material carbon emissions. More information is available here.
The new policy will also tighten restrictions against companies that contribute heavily to climate change. Businesses that lobby against the goals of the Paris Agreement, for example, will be excluded from our investment universe.
Existing restrictions on coal and oil sands have also been intensified to now cover any companies that derive more than 5% of revenues from these activities, and we will no longer invest in those contributing to deforestation through the unsustainable production of palm oil, soy, cattle and timber.
The full climate policy, which also includes details of how Storebrand will make investment decisions in line with scientific consensus, redirect capital flows towards low carbon companies and make it easier for clients to contribute to a low carbon future, is available here.