Norm- and sector-based screening in 2018

In 2018, ISS-Ethix performed an ethical and environmental assessment of the companies in Mistra’s whole portfolio (at 31 December 2018).

    The assessment included norm-based screening that would issue a signal if any of the companies in Mistra’s portfolio were to be in breach of international conventions and principles in the areas of environmental protection, human rights, labour law or anti-corruption measures, and also if the assessment identifies any that are involved in, for example, anti-personnel mines, cluster weapons, or chemical, biological or nuclear weapons. A sector-based screening is also carried out to identify companies in which 5% or more of turnover may be derived from alcohol, gambling, military materiel, pornography or tobacco, or where 50% or more is derived from fossil fuels.

    Altogether, 0.70 per cent of the aggregate value of Mistra’s portfolio (at 31 December 2018) was screened out according to the defined criteria (at 31 December 2017, the figure was also 0.70 per cent). The result of the assessment indicates that international norms are not respected by three different companies in the portfolio (0.33 per cent of portfolio value). Mistra is engaged in dialogue with the asset managers concerned to find out what has happened and what measures should be taken.

    The sector-based screening identified companies associated with military materiel (0.21 per cent), alcohol (0.11 per cent) and fossil fuels (0.04 per cent) according to defined criteria. This information is part of the data support in the dialogue meetings with asset managers.