Responsible Investing

For VER, responsible investment implies effective and consistent observance of the investor’s responsibility. It encompasses monitoring the responsibility and sustainable development of target companies, as well as conducting responsibility-related dialogue with these and with external asset managers.

VER pursues a policy of responsible investment in respect of all investment categories. However, actual policy implementation may vary according to asset class because the latitude available for the application of the underlying principles varies.

VER has signed the United Nations Principles for Responsible Investment (PRI) and complies with the Responsible Investment Guidelines issued by the Finnish Pension Alliance TELA.

VER is a member of Finland’s Sustainable Investment Forum (FINSIF). This is the Finnish contact organisation for the PRI, and it promotes awareness of responsibility within financial management and investment-related decision-making.

Ethical and sustainable investing

In its responsible investment operations, VER observes the following principles of ethical and sustainable development:

  • Ethical investment refers to avoiding certain industries (companies with significant portions of revenue coming from arms, alcohol, tobacco, gambling or adult entertainment).
  • Sustainable investment refers to considering ESG (environmental, social and governance) factors in the investment process.

Monitoring and reporting

The ethical principles are applied in all direct and fund investments. The sustainable development principles are applied by using ESG criteria in evaluating investment targets. The ethical and ESG factors are included in the investment decisions. VER is aware of the fact that these principles may be difficult to abide by in the case of certain complex investment instruments.

The fulfilment of responsibility principles is evaluated regularly and action is taken where necessary. Asset managers are also expected to observe the ESG factors, and the extent to which they do is periodically assessed.

With regard to decisions on new investments, compliance with the guiding principles is ensured during the course of preparation. Existing investments are monitored. If necessary VER influences as a shareholder to improve their performance. As a last resort, VER may relinquish the investment. Under the UNPRI scheme, the signatories are required to report. The reporting model is extensive requiring nformation on compliance within UNPRI's principals of responsible investing.