Summary of responses to the PRI reporting and assessment tool 2008

Folksam

Organisational Overview
1. What were your organisation's total assets under management as of 31 December 2007 (in millions)?220000000
Please select currencySwedish krona (SEK)
1a. If 'Other' was selected, please specify the other currency hereNo Answer
2. What category would best describe your organisation?Insurance company
3. What proportion (in %) of your fund is defined benefit and what proportion (in %) is defined contribution? (please only answer this question if you answered “Pension or superannuation or retirement or provident fund or plan” to Q2)
Defined benefit
Defined contribution
4. Please provide an overview of your asset mix as of 31 December 2007 (in %):
Listed equity (developed market, active)5
Listed equity (developed market, passive)35
Listed equity (emerging market, active)0
Listed equity (emerging market, passive)2
Fixed income - developed markets45
Fixed income - emerging markets0
Real estate or property10
Private equity0
Hedge fund3
Infrastructure0
Currency0
Commodities0
Cash0
Other (Please specify): 0
5. Please indicate what percentage of your assets are managed internally and what percentage are managed externally (in %):
 
Internal
External
Listed equity (developed market, active)0100
Listed equity (developed market, passive)1090
Listed equity (emerging market, active)00
Listed equity (emerging market, passive)0100
Fixed income - developed markets0100
Fixed income - emerging markets00
Real estate or property0100
Private equity00
Hedge fund0100
Infrastructure00
Currency00
Commodities00
Cash00
Other (Please specify): 00
Principle 1
7. Do you have a formal investment policy statement that makes specific reference to the integration of responsible investment (RI) or environmental, social and governance (ESG) issues within investment decision making and ownership practices?Yes, it is integrated into a broader investment policy
9. In what year were RI/ESG issues first formally addressed in a policy statement (integrated or independent)?2001
10. Has your statement that makes specific reference to the integration of RI or ESG issues been disclosed publicly?Yes
11. Please indicate how this statement that makes specific reference to the integration of RI or ESG issues can be obtained (a URL would be sufficient):http://www.folksam.se/
12. For what percentage of your internal assets under management do you integrate RI/ESG issues into your internal investment decision-making processes? (in %)
Listed equity (developed market, passive)100
13. To what extent have you integrated RI/ESG issues into your internal investment decision-making processes?
Listed equity (developed market, passive)To a large extent
14. For what percentage of your external assets under management are RI/ESG issues integrated into the investment decision-making processes of your external investment managers? (in %)
Listed equity (developed market, active)100
Listed equity (developed market, passive)100
Listed equity (emerging market, passive)100
Fixed income - developed markets100
Real estate or property100
Hedge fund50
15. To what extent have RI/ESG issues been integrated into the investment decision-making processes of your external investment managers?
Listed equity (developed market, active)To a moderate extent
Listed equity (developed market, passive)To a moderate extent
Listed equity (emerging market, passive)To a moderate extent
Fixed income - developed marketsTo a small extent
Real estate or propertyTo a small extent
Hedge fundTo a large extent
16. What proportion of your assets involve screening out or excluding stocks or sectors based on ethical (rather than long-term financial) criteria? (in %)100
17. Do you have any staff dedicated to RI/ESG issue analysis and/or implementation?
 
Dedicated
Combined full-time equivalents
Investment analyst10
Research analyst10
RI/ESG issue policy advisor01
(proxy) Voting specialist01
Engagement specialist00
Portfolio manager00
Other (Please specify):00
18. Which Board committee or other executive body has overall responsibility for RI/ESG issues?The board and under them the corporate governance committe
19. Do you assess the capabilities of internal investment staff to incorporate RI/ESG issues?No
20. Do you assess the capabilities of external investment managers to incorporate RI/ESG issues?Yes
21. Approximately what percentage of your internal non-ESG-specialist investment management staff received RI/ESG training in 2007? (in %)50
22. What forms of RI/ESG training or awareness raising have been invested in, encouraged or provided for internal staff (investment and other)?Informal internal training,Formal internal training,Conferences
23. Did you support the development of nonproprietary RI/ESG issue-related tools, metrics, analysis or academic research in 2007?To a moderate extent
24. Please indicate how the results of nonproprietary RI/ESG issue-related tools, metrics, analysis or academic research development you supported can be obtained if they have been disclosed publicly (a URL would be sufficient):1.Metric report on ESG in Swedish listed companies 2007 2. CDP Nordic report 2007 3. Gender equality in Swedish bords2007 4. Assesment of quality in large Swedish companies sustanibility report
25. Have you advocated/supported/ encouraged/participated in RI/ESG issue-related industry-wide training for investment professionals during 2007?Sponsored industry events,Spoke at or attended conferences,Had dialogue or exchanges with peers,Instructed at universities or colleges
26. What was your most significant achievement in 2007 in relation to your implementation of Principle 1?Enter text response here.
27. What was your biggest barrier in 2007 with relation to your implementation of Principle 1?In 2007 Folksam started a screened Hedge fund of fund called Bellair, together with Hardcourt.
28. Please add any overall comments and clarifications related to Principle 1 here.Enter text response here.
Principle 2
29. To what extent did you employ the following approaches in your 2007 active ownership strategy for listed equities?
(Proxy) votingTo a large extent
Direct engagement conducted privatelyTo a moderate extent
Direct engagement conducted publiclyTo a moderate extent
Collaborative engagementTo a moderate extent
Filing shareholder resolutionsPlanning to in 2008
Co-filing shareholder resolutionsNot at all
Other (Please specify):No Answer
30. To what extent did you employ the following approaches in your 2007 active ownership strategy for all asset classes other than listed equity?
(Proxy) votingTo a moderate extent
Direct engagement conducted privatelyNot at all
Direct engagement conducted publiclyTo a moderate extent
Collaborative engagementTo a moderate extent
Other (Please specify):No Answer
31. Do you have a (proxy) voting policy?Yes - disclosed publicly
32. To what extent does your (proxy) voting policy direct action on ESG issues? For each issue, please indicate the extent of direction.
EnvironmentalTo a large extent
SocialTo a large extent
GovernanceTo a large extent
33. Does your (proxy) voting policy apply to all voting regions (where possible)?Yes
34. Please indicate how your (proxy) voting policy can be obtained (a URL would be sufficient):http://www.folksam.se/
35. Do you ensure that voting is done in accordance with your (proxy) voting policy?Yes for some
36. What percentage of total votes cast were against management? (in %)10
37. What percentage of shareholder resolutions relating to environmental, social or governance issues was supported? (in %)
Environmental20
Social20
Governance60
39. How many shareholder resolutions related to RI/ESG issues did you participate in during 2007?
As lead filer0
As co-filer0
Planning to be lead filer in 20080
Planning to be co-filer in 20085
40. How were portfolio companies engaged with in 2007? Please check all that apply.Internal staff engaged portfolio companies directly,External investment managers engaged portfolio companies collaboratively,An external engagement overlay service was employed
42. Do you systematically ask your external investment managers to bring RI/ESG issue-related engagement opportunities to you?To a large extent
43. How many portfolio companies did you engage directly/were engaged on your behalf on ESG issues in 2007?
 
Extensive engagement
Moderate engagement
Basic engagement
Environmental54300400
Social54300400
Governance10300400
44. What RI/ESG-related issues were addressed in your shareowner engagement initiatives? Please check all that apply.Activities in conflict zones,Benefits and compensation,Bribery/corruption,Climate change,Environment,Governance,Human rights,Labour issues
45. How were RI/ESG issue-related engagement targets and topics identified? Please check all that apply.Client directive,Sector exposure,Risk profile,Focus issue,Ad hoc/reactive,NGO or union campaign
46. Do you set RI/ESG issue-related engagement objectives and attempt to evaluate success?To a large extent
47. Have you sought evidence relating to the effectiveness of your active ownership strategy? Please check all that apply.(Written) commitment to improve a particular ESG issue,Improved disclosure,Collaborative work with a company on a specific ESG issue,Shareholder resolutions withdrawn after successful negotiations with portfolio companies
48. What was your most significant achievement in 2007 in relation to your implementation of Principle 2?1. The climate issue was adressed in Swedish AGM:s to a large extense. 2. Remunition issues was better explained 2007.
49. What was your biggest barrier in 2007 with relation to your implementation of Principle 2?Proxy voting is not fully adopted in Sweden.
50. Please add any overall comments and clarifications related to Principle 2 here.Enter text response here.
Principle 3
51. Have you asked that investee companies (or other investment entities) produce standardized reporting on their RI/ESG issue policies, practices or performance (within annual financial reports or other formats)?To a large extent
52. What format of standardized reporting on RI/ESG issue policies, practices or performance have you requested?Integrated with regular financial reports,Standalone corporate social responsibility or sustainability reporting,Global Reporting Initiative (GRI),Carbon Disclosure Project (CDP)
53. Have you provided feedback to investee companies (or other investment entities) on their reporting on RI/ESG issues?To a large extent
54. Have you sought information from companies regarding their adoption of/adherence to norms, standards, codes of conduct or international initiatives related to RI/ESG issues?
AdoptionTo a large extent
AdherenceTo a large extent
55. Which norms, standards, codes of conduct or international initiatives related to RI/ESG issues have you sought information about from companies, with regard to their adoption of/adherence to?UN Global Compact,International Labour Organization standards,OECD guidelines for multinational enterprises,Universal Declaration of Human Rights
56. What was your most significant achievement in 2007 in relation to your implementation of Principle 3?Making and disclosured the CDP report for Scandinavia 2007. /0 percent of the companies answerd.
57. What was your biggest barrier in 2007 with relation to your implementation of Principle 3?Knowlede about GRI standards in the listed companies. Metric problems in companies with operations in different countries.
58. Please add any overall comments and clarifications related to Principle 3 here.Enter text response here.
Principle 4
59. Are you considering RI/ESG requirements when searching for and selecting the following?
External investment managerYes
Investment consultantYes
Proxy votingYes
Engagement overlayYes
Investment researchYes
Internal operations (for example, purchasing, travel, office space etc.)Yes
Other (Please specify):Not applicable
60. Have you linked the following to performance on RI/ESG issues?
Investment monitoringNo
Incentive structure (internal investments)No
Incentive structure (external investments)No
Contractual relationships with external investment managersYes
61. Are the default pension funds or retirement plans offered to your employees also signatories to the PRI?Yes
62. To what extent do you encourage your service providers to become PRI signatories?To a moderate extent
64. To what extent do you encourage peer organisations to become PRI signatories?To a large extent
65. Do you have evidence that you have played a role in the improved integration of RI/ESG issues by external investment managers?Not at all
67. Have you revisited any relationships with service providers in light of RI/ESG issue-related capabilities?No
68. Have you engaged in dialogue, lobbying or initiatives pertaining to government policy and/or industry regulations (for example, stock exchanges, accounting standards) related to RI/ESG issues in 2007?To a small extent
69. What was your most significant achievement in 2007 in relation to your implementation of Principle 4?Developing collaboration with other european insurance companies en the EURESA family.
70. What was your biggest barrier in 2007 with relation to your implementation of Principle 4?Lack of intresst in the Swedish investmentindustry.
71. Please add any overall comments and clarifications related to Principle 4 here.Enter text response here.
Principle 5
72. Did you use the PRI Engagement Clearinghouse in 2007?Planning to in 2008
73. Did your use of the clearinghouse result in subsequent action or collaboration with other signatories?No Answer
74. Please elaborate on how the PRI Engagement Clearinghouse could be made more useful:Education in the subject
75. To what extent do you participate in the following RI/ESG issue-related collaborative engagement initiatives and/or industry associations? For those not listed, please use the "other" field:Carbon Disclosure Project,Regional social investment organisation (for example SIF or UKSIF),United Nations Environmental Program Finance Initiative (UNEP FI),Other (please specify): 'EURESA voting alliance'
76. Please indicate the three RI/ESG issue-related collaborative engagement initiatives and/or industry associations that you participated in most extensively and indicate how you did so:
Carbon Disclosure ProjectNordic Report 2007 as a partner Special Swedish edition of the Nordic report Supporting the nordic office
Other (please specify)
Arranging a voting alliance in France, Belgium and UK
United Nations Environmental Program Finance Initiative (UNEP FI)Stockholm wather week
77. What was your most significant achievement in 2007 in relation to your implementation of Principle 5?The voting alliance
78. What was your biggest barrier in 2007 with relation to your implementation of Principle 5?Limited costs
79. Please add any overall comments and clarifications related to Principle 5 here.Enter text response here.
Principle 6
80. Have you disclosed how RI/ESG issues are integrated into your investment processes?Yes - to clients or beneficiaries and the public
81. Please indicated how this disclosure of how RI/ESG issues are integrated into your investment processes can be obtained (a URL would be sufficient):www.folksam.se
82. To what extent do you disclose your annual (proxy) voting record?Planning to in 2008
83. Please indicated how your (proxy) voting record can be obtained (a URL would be sufficient):No Answer
84. Do you systematically report (privately and/or publicly) on your RI/ESG issue-related engagement activities, results and progress?To a large extent
85. Please indicate how your reporting on RI/ESG issue-related engagement activities, results and progress can be obtained (if it is publicly available, a URL would be sufficient):No Answer
86. Did you communicate on RI/ESG issues and the PRI to beneficiaries or plan participants in 2007?No Answer
87. Please indicate how your communication on RI/ESG issues and the PRI to beneficiaries or plan participants can be obtained (if it is publicly available, a URL would be sufficient):No Answer
88. Are you undertaking any additional efforts to raise awareness of the PRI and RI/ESG issues amongst stakeholders?To a small extent
89. What evidence do you have of the impact on external investment manager practices? Please check those that apply.Investment policy,Investment decisions,Engagement,Proxy voting,Provision of new research
90. Have you sought to determine what impact your overall RI/ESG issue-related efforts (voting and engagement, investment decision making, disclosure, etc.) have had on corporate behavior or performance?To a small extent
91. Have you sought to determine what impact your RI/ESG issue-related approach has had on the performance of your portfolio?To a small extent
92. Have you sought to determine what impact your RI/ESG issue-related efforts, requests and guidance have had on the consideration of RI/ESG issues by your external service providers excluding external investment managers (for example: research providers, consultants, etc.)?Not applicable
93. Do you report on progress and/or achievements relating to the PRI or RI, and how would you like to publish your response to this assessment?Please automatically publish our responses to the reporting and assessment tool in full on the PRI website
94. What was your most significant achievement in 2007 in relation to your implementation of Principle 6?Enter text response here.
95. What was your biggest barrier in 2007 with relation to your implementation of Principle 6?Enter text response here.
96. Please add any overall comments and clarifications related to Principle 6 here.Enter text response here.
Emerging Markets
97. To what extent have you actively thought about how to integrate RI/ESG issues within investment decision making and ownership practices with regards to emerging markets investments?Planning to in 2008
98. Please describe your activities with regards to integrating RI/ESG issues within investment decision making and ownership practices with regards to emerging markets investments.Planning a screend emerging market portfolio 2008
99. To what extent do you believe the integration of ESG issues in emerging markets is as relevant as the integration of ESG issues in other markets?To the same extent
100. To what extent did you employ the following approaches in your 2007 active ownership strategy in emerging markets?
(Proxy) votingTo a small extent
Direct engagement conducted privatelyTo a small extent
Direct engagement conducted publiclyNot at all
Collaborative engagementTo a small extent
Filing shareholder resolutionsNot at all
Co-filing shareholder resolutionsNot at all
Other (Please specify):No Answer
101. To what extent have you developed a comprehensive RI/ESG engagement capability regarding business activities in emerging markets?To a moderate extent
102. Please list the three most often addressed RI/ESG-related issues in your shareholder engagement initiatives in emerging markets?
1.Working conditions
2.Corruption
3.Transparancy issues
103. Have you sought information from companies regarding their adoption of/adherence to norms, standards, codes of conduct or international initiatives related to RI/ESG issues in emerging markets?
AdoptionTo a small extent
AdherenceTo a small extent
104. Do you take RI/ESG considerations into account when selecting and approving emerging markets external investment managers?To a large extent
105. Do your consultants factor RI/ESG issues into their short listing of emerging markets external investment managers?To a moderate extent
106. Do you have evidence that you have played a role in the improved integration of RI/ESG issues by external investment managers investing in emerging markets?Not at all
107. To what extent have you worked together with other investors to improve the effectiveness of implementing the PRI in emerging markets?Planning to in 2008
108. Are you undertaking any additional efforts to raise awareness of RI/ESG issues in emerging markets?Planning to in 2008
109. Have you sought to determine what impact your RI/ESG issue-related efforts (voting and engagement, investment decision making, disclosure, etc.) have had on corporate behaviour or performance in emerging markets?Planning to in 2008
110. Please add any overall comments and clarifications related to the PRI in emerging markets here.No Answer
111. What is your top PRI-related goal/priority for emerging markets in 2008?No Answer
Closing Comments
112. Why did your organisation join the PRI?The background to Folksam being involved in this task is our commitment to environmental issues, labour law, and corporate governance.
113. Please describe the benefits you have enjoyed as a result of signing the PRI:Network posibilities Knowlege base
114. To what extent do you believe the PRI has succeeded in changing investor behaviour and/or raising awareness or capacity on RI/ESG issues? Do you have any examples you could share?I´ts a god beginning but a lot of work is still ahed
115. What are the top three activities the PRI Secretariat could undertake to enhance and encourage further implementation of the PRI by current and prospective signatories?
1.International conference
2.Local activities
3.Translations in diffrent languages
116. What are your top three PRI-related goals/priorities for 2008?
1.More activites ponting at the investment industry
2.Make one of the largest investment houses a signatory
3.Develop tools for reporting
117. Please rank the six principles from most difficult to implement to least difficult to implement:
Most difficult
1
Principle 4
2Principle 5
3Principle 3
4Principle 6
5Principle 2
Least difficult
6
Principle 1