Exclusions

The DNB Group Instruction for Responsible Investments shall ensure that DNB does not contribute to human or labor rights violations, corruption, serious environmental harm or other actions which may be perceived to be unethical and/or unsustainable through its investment activities. If a company is found to operate in breach of the criteria set out in DNB’s Group Instruction for Responsible Investments, it may be placed on DNB’s exclusion list.

DNB AM is not invested in any companies placed on DNB’s exclusion list. The list of excluded companies can be found here.

Based on the Group Instruction, companies will be excluded from DNB's investment universe and portfolios if they themselves or through the entities they control:

• produce weapons which through normal use violate basic humanitarian principles,
• produce tobacco,
• produce cannabis for recreational use,or
• produce pornography.

Companies which derive 30 per cent or more of their income from oil sands extraction, as well as mining companies and power producers which themselves or through entities they control derive 30 per cent or more of their income from thermal coal, or base 30 per cent or more of their operations on thermal coal, may also be excluded from the investment universe. In addition, companies which either extract more than 20 million tonnes of thermal coal or have a power generating capacity of more than 10 000 MW from the combustion of thermal coal, may be excluded from the investment universe.

Further, companies may be excluded from the investment universe if there is an unacceptable risk that a company contributes to or is responsible for:

• serious or systematic violations of human rights,
• grave violations of individual rights in wars or conflict situations,
• the sale of weapons to states engaged in armed conflict that use the weapons in ways that constitute serious and systematic violations of international rules on the conduct of hostilities,
• the sale of weapons or military materiel to states that are subject to investment restrictions on government bonds from countries subject to sanctions imposed by the UN Security Council,
• serious violations of basic labour rights,
• grave harm to the environment,
• acts or omissions that on an aggregate company level lead to unacceptable greenhouse gas emissions,
• serious corruption, or
• other particularly critical violations of basic ethical norms.

DNB will also not invest in government bonds from countries subject to sanctions imposed by the UN Security Council og companies subject to sanctions (from UN, EU, US (OFAC) and other local sanctions regulations if they are relevant) applicable to financial investments in DNB.

In addition to adhering to DNB’s exclusion list, a company may be removed from DNB AM’s investment universe if deemed necessary, based on DNB AM’s own analyses and risk assessments, in order to uphold responsible investment practices.