Accunia became an UNPRI signatory in February 2018. By signing the internationally recognized UNPRI principles, Accunia is committed to supporting a more sustainable financial system. UNPRI is the United Nations Principle for Responsible Investment, and the six principles that Accunia has signed up to are:
Principle 1: We will incorporate ESG issues into investment analysis and decision-making processes.
Principle 2: We will be active owners and incorporate ESG issues into our ownership policies and practices.
Principle 3: We will seek appropriate disclosure on ESG issues by the entities in which we invest.
Principle 4: We will promote acceptance and implementation of the Principles within the investment industry.
Principle 5: We will work together to enhance our effectiveness in implementing the Principles.
Principle 6: We will each report on our activities and progress towards implementing the Principles.
Upon signing the UNPRI principles, Accunia agrees to periodically produce a report on our responsible investment activities. The purpose of this is to improve international transparency with regards to our investments.
The PRI is the world’s leading proponent of responsible investment. It works to understand the investment implications of environmental, social and governance (ESG) factors and to support its international network of investor signatories in incorporating these factors into their investment and ownership decisions. The PRI acts in the long-term interests of its signatories of the financial markets and economies in which they operate and ultimately of the environment and society as a whole.
The PRI is truly independent. It encourages investors to use responsible investment to enhance returns and better manage risks but does not operate for its own profit. It engages with global policymakers but is not associated with any government. It is supported by, but not part of, the United Nations.
Accunia decomposes its investment universe into three categories: Direct Investments, Indirect Investments and Indexes. Direct Investments comprise companies and entities we directly invest in. Investments in actively managed funds, such as third-party managed CLOs, are denoted Indirect Investments. Lastly, investments in CDS credit indexes or other passive indexes, e.g. all Main/Xovers, are categorised as Indexes. As shown in Exhibit 1, currently roughly 95% of Accunia’s assets under management are ESG screened.
Accunia’s does not invest in companies (Direct Investments) or with investment managers (Indirect Investments), which participates in systematic and gross violations of the environment, labour conditions human rights or participates in corruption.
Exhibit 1: Accunia’s Investments
Screening Direct Investments
Accunia does not invest in companies or entities generating most of their income from:
a) thermal coal mining or the generation of electricity using coal;
b) the production of or trade in Controversial Weapons;
c) the production of or trade in Tobacco; or
d) the provision of services related to Gambling.
Taking into account the abovementioned general restrictions of gross and systematic violations and restricted product/industries, we then categorise all Direct Investments according to the system shown in Exhibit 2.
Exhibit 2: ESG rating of Direct Investments
Screening Indirect Investments
For Indirect Investments where external managers make the final investment decision, Accunia’s analysis is based on the ESG approach of that manager. The ESG analysis relies of the six ESG factors outlined in Exhibit 3. Upon analysing the six factors, we decide whether each manager can make our ESG white list or not. Accunia only invests in managers on our white list.
Exhibit 3: ESG Analysis of Indirect Investments
The ESG Committee meets at least quarterly to discuss ESG investment issues, update business procedures, and make recommendations to the board to change the ESG policy from time to time.
The members of Accunia’s ESG Committee are:
Chief Executive Officer
Magnus Bruun Jacobsen
Head of Structuring
Christian Grane, CFA
Chief Business Officer, Partner
Head of Risk Management
Chief Compliance Officer