Lífeyrissjóður verzlunarmanna (LV) has put a total of 138 companies on the exclusion list. Assets worth more than ISK 3 billion have already been sold from LV’s portfolios due to the exclusion. The reason is that the companies’ operations do not meet the criteria for sustainability and responsible investment according to the new overall policy of the LV board on responsible investment.
Policy on exclusion of assets from LV’s portfolios
The policy covers all of the fund’s portfolios. It describes LV’s methodology for excluding certain companies and looks, among other things, at models from leading pension funds in the Nordic countries.
The exclusion policy is a guiding light in the management of LV’s portfolios. The exclusion applies to companies that manufacture certain products or are considered to be in breach of certain international standards on human rights and business ethics.
138 companies
Based on the policy, LV has already placed 138 companies on the exclusion list; 88 companies that process coal, oil sands and oil clays, 13 companies in tobacco production, 22 companies that produce controversial weapons and 15 companies that are considered to be in breach of the UN Global Compact. Assets worth more than ISK 3 billion have already been sold. from LV’s portfolios based on the policy.
The implementation of the policy takes time and therefore companies in LV’s portfolios that are on the exclusion list must still be found for the time being. The reason is that so far LV has limited opportunities to express views on exclusion when the fund invests in foreign assets such as equity funds.
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