Responsible investment
Environmental, social, and governance (ESG) issues, including climate change, have an impact on the performance, risks, and value of all companies. Considering these issues in the investment process is an important way to improve the risk-return ratio of investments and is a critical success factor for investment activities.
Sampo Group is committed to responsible investment and signed the UN Principles for Responsible Investment (PRI) in 2019. At Sampo Group, responsible investment is defined as an approach to managing assets so that ESG issues are incorporated into investment analysis, decision-making, and reporting. It also includes active ownership related to ESG matters. Responsible investment practices aim to combine better risk management with improved portfolio returns while reflecting investor values. This approach complements traditional financial analysis and, therefore, ESG issues are considered in parallel with other factors affecting the risk-return ratio of investments.
The sustainability field is very broad and rapidly evolving, which means the list of criteria considered in ESG analysis continues to grow. Environmental factors (E) cover, for example, climate change, deforestation, biodiversity, resource management, pollution, and waste management. Social factors (S) include, for example, human rights, labour rights, supply chain management, workplace health and safety, and a company’s relationship with different stakeholder groups. Governance (G) covers, for example, leadership, compensation, audits, internal controls, and shareholder rights.
Sampo Group has a group-level responsible investment policy that outlines the principles of responsible investment applied to the investment activities of Sampo plc and its subsidiaries holding investment assets. The policy is reviewed annually and approved by the Board of Directors of Sampo. The Sampo Group Responsible Investment Policy serves as a minimum guideline, while each subsidiary also maintains its own supplementary responsible investment policies (or similar) tailored to its specific operations.
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