Elo’s responsible investment at an excellent level in an international assessment
The Principles for Responsible Investment (PRI) supported by the UN assessed Elo’s strategy and governance for responsible investment to continue at the excellent A+ level. The median of the control group was A. Elo achieved the A+ level in 2016 and has maintained the excellent level as the international level has improved over the past few years.
Direct equity investments achieved the excellent A+ rating in both integrating responsibility into the investment process (median A) and in active ownership (median B). The rating of Elo’s credit risk fund investments rose to the best A+ category (median A) compared with last year’s assessment. The rating for other assets classes was A, excluding direct infrastructure investments.
“Compared to last year, we improved the way we integrate responsibility principles into the selection of funds by developing the due diligence process for funds and by developing active ownership in all direct equity investments through increasing the number of times we vote in annual general meetings, and also, by changing our proxy advisor, we were able to participate in annual general meetings globally on a broader scale. In addition, we participated more actively in different engagement initiatives with our partners and developed the monitoring of ESG factors in sovereign bonds,” says Jukka Vähäpesola, Head of Equities at Elo.
“The PRI report is a good tool for monitoring and benchmarking the current state and development of our own responsibility processes against other international peers. We also get valuable and comprehensive information for the development of responsibility through international benchmarking. In the last two years, we have focused on assessing climate risk and taking it into account better in our investment strategy. We will be updating our climate strategy by the ned of this year,” concludes Vähäpesola.