The SRI screening is performed by Ethix SRI Advisors, which is an independent, specialised SRI consultant.
The screening process
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:
- 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.
- Ethix then seeks to verify the allegations through official sources and to determine whether the violations are sustained, severe and systematic. Throughout the process, Ethix pursues a dialogue with the company and other relevant stakeholders.
- Ethix provides the SRI Board of the Danske Bank Group 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 Group’s SRI Board decides whether the company is to be excluded.
If a company that the SRI 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.
See the list of excluded companies
Last updated on 18 February, 2011