The pension fund's aim is to generate the highest possible return as well as being a responsible investor.
We have decided on policies and guidelines to ensure integration of responsibility in our investments. The policies and guidelines are based on both national and international guidelines for responsible investments and are structured across our investments.
Policy for responsible investments
The policy on responsible investments is part of DIP's investment policy.
The policy creates a structure for the work with responsible investments and clarifies:
- on which guidelines the policy is based?
- how we use the policy across our investments?
- which themes we focus on in the work with responsible investments?
- how we engage in active ownership in the companies we invest in?
- why we chose to exclude certain companies?
DIP's investment committee must have an advisory role in relation to the pension fund's work with responsible investments.
When the investment committee is informed about new potential investments, the responsibility in the investments must be assessed.
The investment committee must consider whether there are changes to the pension fund's exclusion list as well as relevant issues relating to responsibility.
The Head of ESG is part of the investment committee.
Responsible investments in practice
There are a number of guidelines defining the framework of DIP's work with responsibility in practice, i.e. how the pension fund assesses responsibility in a certain investment.
Before we invest
Before we invest, we assess potential investments in relation to our policy for responsible investments, and when we select investment managers, their work with responsibility is part of the assessment and the final selection.
The investment manager must, before an investment is made, ensure that the specific investment is in accordance with DIP's policy for responsible investments. This includes an assessment of how companies avoid and handles negative impact on human rights, employees' rights, the climate, environment, tax and anti-corruption.
When the investment is made
We engage in active ownership in relation to our investments. The purpose is to facilitate that the companies comply with DIP's policy for responsible investments, minimize risks and encourage the companies' long-term value creation.
Active ownership includes supervision of companies, dialogue with selected companies, cooperation with other investors and as far as possible voting at companies' annual general meetings. Hermes EOS handles the primary dialogue with selected listed companies on behalf of the pension fund.
When an assesmant is made, it may result in:
- that no further action is made against the company
- that the the company is being put on DIP's observation list
- that DIP enters into a dialogue with the company
- that DIP excludes the company.
The UN's 17 global goals on sustainable development
DIP must focus on making investments that support the UN's 17 global goals on sustainable development, however, it must not be at the expense of the return to the members.
The UN's 17 global goals on sustainable development must be supported through integration of responsbility in the investment decisions. Besides, the pension fund must prioritize investments in funds supporting the UN's 17 global goals on sustainable development.
DIP is part of below-mentioned networks and organisations through which we in different ways work for responsible investments.
The world’s largest network focusing on responsible investments. As a member of PRI, the pension fund commits itself to incorporate responsibility in its investments.
A networking forum for professional investors, consultancy firms and others who are committed to responsible investments in Denmark. In Dansif, the members exchange knowledge on responsible investments. Dansif organises events about subjects within responsible investments. DIP has an active role in Dansifs event committee.
CDP works to create transparency about companies and other players’ emission of carbon dioxide.
IIGCC is an European network organisation for institutional investors. The purpose of IIGCC’s work is to create investment-related framework conditions for handling risks and possibilities resulting from climate change.
Exclusion of companies and countries
DIP's exclusion list includes a number of companies and countries which the pension fund does not invest in. The list is included in all investment structures possible. The companies and countries are on the list, because:
- They systematically violate DIP's policy for responsible investments, and active ownership is pointless.
- They violate the UN's treaties and conventions that Denmark has signed concerning nuclear weapons, anti-personnel mines, cluster munition, chemical weapons, biological weapons and other controversial weapons.
- As a consequence of an assessment of financial sanctions.
- The counties are not assessed to be a good investment based on an assessment of state governments' governance as well as environmental og social conditions in the country.
When a company or a country is entered on the exclusion list, the pension fund must not invest further in the company or country's government bonds, and when the market conditions allow for it, the pension fund must sell of the investment.
The pension fund's investment committee has an advisory role in relation to the pension fund's work with responsible investments.
When the investment committee is informed about new, potential investment, the responsibility of the investment must be assessed.
The investment committee must discuss new, potential investments, whether there is a need for changes to the pension fund's exclusion list as well as relevant cases and issues relating to responsibility.
The pension fund's head of ESG is a member of the investment committee.