Skip to main content

The content on this page is marketing communication

Enhanced due diligence of companies in high emitting industries

All companies in high emitting industries will be subject to an enhanced due diligence. 

An assessment is made at the screening stage as to whether a company should be subject to enhanced due diligence. For companies in the following industries, enhanced due diligence must be conducted in advance of investing:

image92wqp.png

The ESG team will compile relevant data which are relevant for the Portfolio Manager to consider in their assessment of ESG-related financial risks. These ESG metrics will form a key aspect of the delta measurements that will be monitored during the holding period. Information on the scope of strategic and management awareness to address climate risks shall also be accounted for. 

Parameters to assess in the enhanced due diligence

The purpose of conducting an enhanced due diligence assessment is to uncover and document climate-related risks and assess relative impact on double materiality. The following aspects will be assessed:

  • Principle Adverse Impact emission indicators and their delta
  • Transition Pathway: the scope and significance of the decarbonisation pathway
  • Assessment of reputational risk and financial risk; with a corresponding engagement plan if identified and deemed necessary

Historical returns are no guarantee for future returns. Future returns will depend, inter alia, on market developments, the fund manager’s skills, the fund’s risk profile and management fees. The return may become negative as a result of negative price developments. There is risk associated with investing in funds due to market movements, currency developments, interest rate levels, economic, sector and company-specific conditions. The funds are denominated in NOK. Returns may increase or decrease as a result of currency fluctuations. Prior to making a subscription, we encourage you to read the fund's prospectus and key investor information document which contain further details about the fund's characteristics and costs. The information can be found on www.skagenfunds.com. Storebrand Asset Management administers the SKAGEN funds which are by agreement managed by SKAGEN's portfolio managers.

Get news and analysis directly to your inbox

By signing up you consent to SKAGEN registering your e-mail address for this purpose. You can unsubscribe at any time by using the link provided in the emails. More about SKAGEN’s personal data policy can be found in our privacy policy.

keyboard_arrow_up