The most fundamental SRI topic? - corruption screening experiences

Christine Tørklep MeisingsetHead of SRI

StorebrandNovember 2006

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”Our major contribution to society will comethrough our core business, rather thanthrough our philanthropic programs.

If action to address such issues is to be substantial and sustainable, it must also be profitable.

The WBCSD report (2006) "From Challenge to Opportunity"

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Storebrand’s SRI angle

Long term perspective

Reduce risk

Build trust

Our most significant contribution to sustainable development

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Group wide SRI standard

72 companies are excluded from investment in all Storebrand’s funds and pension portfolios (September 2006)

Based on international standards and norms: FN, ILO, OECD, Ottawa, Kyoto ++

Human rights and labour rights (4)

Corruption (11)

Severe environmental degradation (1)

Landmines (1)Cluster bombs (6)

Nuclear weapons (11)

Tobacco (11)

10% worst companies in high risk industries (33)

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The logic behind corruption screening

Threat to financial markets

Legal compliance

Costs

Reputational risks

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Unacceptable at what point?

Misuse of trusted position to obtain personal or commercial advantages

”any undue advantage”:

- give and offer

- receive and accept

- public and private

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Negative screening

Best in Class analysis

Engagement

Methodology

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Corruption screening procedure

Monitoring

Quarterly meetings

Responsible investment committee

Analysis

2600 companies Dialogue + advisor

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Responsible investment committee

Hans AasnæsManaging Director, Storebrand Investments

Frederic OttesenGroup Finance Director, Storebrand Life Insurance

Hans Henrik KloumanGeneral Counsel, Executive VP

Egil ThompsonCorporate Communications and Public Relations, Excecutive VP

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Still learning..

Where to draw the line

Companies’ participation

Legal references

Best practice

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Storebrand's responsibility is to create value,but we are not indifferent to how this is achieved

Idar KreutzerCEO, Storebrand