We screen our investment portfolios according to internationally recognised norms and standards for human rights, arms, working conditions, the environment and anti-corruption. Such norms and standards are:
- UN Global Compact
- UN Guiding Principles on Business and Human Rights
- OECD Guidelines for Multinational Enterprises
We also take into account eight additional international conventions relevant to the development of RI since 2003.
The responsible investment (RI) screening is performed by ISS-Ethix, which is an independent, specialised RI consultant. The overall responsibility for the screening process lies with the RI Board, in which Danske Capital, DI and Danica are also members.
The screening process
ISS-Ethix clarifies the circumstances under which companies are alleged to have violated international norms. The cases are often complex and dynamic. The analysis is typically conducted as follows:
- ISS-Ethix begins by evaluating information from a large number of sources (e.g., the UN, other inter-governmental organisations, national authorities, NGOs and the media) about alleged corporate involvement in activities that violate international norms.
- ISS-Ethix pursues a dialogue with the company and other relevant stakeholders.
- ISS-Ethix provides the RI Board with the results of its analyses, and the Board decides whether to exclude the securities from the investment universe or to engage further in an active shareholder dialogue.
The dialogue process
The purpose of the dialogue is to ensure that the information used as the basis of the decision is adequate and accurate and to determine whether the company plans to change its behaviour regarding the issue.
The dialogue process, which may be both written and oral, contains a range of elements:
- Inquiries made to the company about supplementary information
- Requests that the company explain any uncertainties arising in the response to the first letter
- Assessment of whether the company plans to change its behaviour regarding the issue
- The dialogue concludes when the company is informed of the outcome of the dialogue process
Depending on the result of the dialogue, the RI Board decides whether the company is to be excluded. However, exclusion does not guarantee changes or improvements at a company. Instead of excluding companies, we therefore prefer to encourage the development of higher standards of responsibility.
If a company that the RI Board has decided to screen out takes adequate corrective measures, it will be re-assessed for inclusion in the investment universe.
The Group publishes a list of the companies that have been screened out of the portfolios semi-annually.
The exclusion criteria used as part of our responsible investment screening process apply when Danske Bank invests on behalf of clients through the investment funds of Danske Invest, Danske Bank's investment pools as well as the pension schemes Balance and Traditional offered by Danica Pension. The exclusion criteria do not apply to structured products and derivatives, externally managed funds and exchange-traded funds (ETFs), neither on a stand-alone basis nor if being part of the investments in other funds or products. Danske Bank wants to maintain an investment universe with a wide range of investment options for our clients.
See the list of excluded companies
Our commitment to ESG
We continue to explore the opportunities to further integrate the consideration of ESG (environmental, social and governance) risks into the investment process beyond the screening and simultaneously to provide customers with more transparency about these risks.