Principles

Standards

Standards provide consistency across markets and raise the bar for all companies. We participate in the development of international standards and use them, together with our own expectations and positions, to guide companies. Our goal is well-functioning markets and good corporate governance.

The fund is invested in 70 countries. We benefit from internationally agreed standards that apply to all companies and promote long-term value creation. We recognise a set of international principles and standards from the UN and the OECD which provide a framework for our work with companies and other stakeholders.

We contribute to the further development of standards. We participate in consultations and engage regularly with international organisations, regulators and other standard setters, industry partners and academics. We can draw on our experience as an investor in 70 national markets and our in-depth knowledge of companies in our portfolio.

Our expectations of companies

Within this framework of internationally agreed standards, we set our own priorities based on our mandate and characteristics as a fund. We formulate expectations of companies, guidelines for our voting and positions on governance issues. These public documents communicate our priorities to the wider market and ensure predictability in our long-term ownership.

We see good corporate governance as a premise for responsible business practices. Shareholders must be able to influence important board decisions. We expect boards to understand the broader environmental and social consequences of their companies’ activities, take them into account when setting strategy, analyse risks and report on outcomes.

Research

It is important in our work to understand global trends that could affect long-term creation of financial value for the fund. Economic activity in one sector can impose considerable indirect costs on other sectors and society as a whole. Understanding of how governance and sustainability impact on financial risks and returns is still evolving. We support and initiate research projects that contribute to this process. We collaborate with academic institutions to access the latest research and obtain analyses that can inform our investment strategy, risk management and ownership.