Principles for ownership management

The company’s objective is to build and safeguard long-term shareholder value

The company must have a clearly defined objective and a business strategy. To protect the interests of shareholders and prevent the company from diverging from value-creating strategies, fundamental decisions should be taken by the shareholder meeting. Such decisions are changes to the business purpose and bylaws, changes to shareholder rights, significant changes to the share capital, and the election of board directors. The company must provide adequate and timely information on all matters material to the valuation of the company.

The company’s board of directors shall work in the interest of all shareholders

The board shall take a long-term view of value creation, be sufficiently independent and provide management with opportunity and adequate incentive to build profitable business that can be sustained. It is the board’s responsibility to ensure internal control and equitable treatment for all shareholders. In fulfilling its tasks, the board is accountable to shareholders for its decisions. Shareholders should be able to propose, elect and dismiss board directors at shareholder meetings without unreasonable hindrance.

The company must address the impact of its activities on society and the environment

The company’s board of directors is responsible for the establishment of a strategy and policies securing business practices that are consistent with sustainable development.OWNERSHIP

Ownership activities

The activities will be long-term, relevant and principle-based. To achieve the objectives of the ownership activities in an efficient manner, we will concentrate our ownership activities to a limited number of focus areas which are of particular importance for the fund and which reflects our priorities. Before deciding on material changes to our focus areas, we will ensure that the views of the fund’s stakeholders are heard through a public process.

We will use a range of strategies and tools to carry out our ownership activities. These tools include: 

Communicate our principles and be transparent about our priorities and activities.

We will communicate our ownership principles and priorities. We believe transparent communication is essential to secure wider understanding of our operations and activities. We will communicate directly with companies and organisations and regulatory agencies that establish standards and principles for good corporate governance in order to contribute to the safeguarding of shareholder rights and to ensure the interests of investors.

Co-operate with investors and organisations

We will co-operate with investors, relevant organisations, and international networks to promote our principles and to strengthen our influence. NBIM will co-operate with other investors on a case-by-case basis or on issues related to revision or changes in regulations or policies towards companies and/or regulating bodies. We will work to solidify and improve regulation and market standards in order to support value creation and sustainable practises.

Engage with companies

NBIM will engage with portfolio companies in order to address our expectations with regard to our strategic focus areas, and other issues considered to be of importance to NBIM. NBIM seeks to engage with companies that have structures or systems or that conduct business in a manner that diverge from our expectations. In addition we will seek to engage with companies where a change in its business practice can cause spill over effects in the market or the sector.

Vote at company meetings

We will exercise our shareholder rights, including voting at shareholder meetings world-wide. NBIM shall have in place voting guidelines that are aligned with international and local standards for best practices. When warranted, NBIM may file shareholder proposals.

Legal actions

NBIM may take legal action to promote good corporate governance and safeguard our interests as a shareholder.