Norwegian investment firm ODIN Fund Management has teamed up with Hermes fund managers in order to implement SRI and ESG principles into its investment process.
Spearheaded by CIO Jarle Sjo the firm has created a score card as part of its investment process. The portfolio manager then scores a company on environmental, social and governance before a go ahead can be given.
'We cooperate with other investors in order to represent more assets and larger stakes in the companies and thus have a bigger impact on the decisions. Being an active shareholder is key for us,' said Sjo who was appointed CIO at the end of 2011.
The value manager seeks to influence companies they think are worthy of an investment, in order to get them back on a responsible track.
'We don’t have a black list. We look at attractive companies and determine whether we can improve their processes through our own involvement. The changes that we engage in and encourage in some of our holdings will hopefully improve the outlook for these companies and hence returns. It benefits both parties.'
'ODIN motivates portfolio managers to be in it for the long term because long term investments and sustainability go hand in hand in our opinion,' he said.