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1. The management of Folketrygdfondet is premised on the objective of maximizing returns over time within the limits defined by the mandates given to Folketrygdfondet. The long-term creation of value depends on favourable financial and environmental developments on the part of the companies, good stewardship with regard to the social responsibilities of the companies, and well-functioning and effective markets. 2. Folketrygdfondet integrates environmental, social and corporate governance considerations into its investment activities in line with internationally recognised principles for responsible investment activities. Such integration is reflected in its investments strategies and its role as a long-term financial asset manager. 3. The overarching objective of the ownership policies and practices of Folketrygdfondet is to safeguard financial interests. 4. Folketrygdfondet shall contribute actively to the development of good national standards with regard to responsible investment activities and corporate governance. 5. The ownership policies and practises of Folketrygdfondet are based on the UN Global Compact, the UN Principles for Responsible Investment (PRI), the OECD Guidelines on Corporate Governance, the OECD Guidelines on Multinational Enterprises and the Norwegian Code of Practise for Corporate Governance. 6. Folketrygdfondet shall conduct its affairs in a responsible and predictable manner, shall exercise a high degree of diligence in its treatment of ownership issues, and shall act in such a manner that no doubt is cast on the role, independence and neutrality of Folketrygdfondet in relation to other stakeholders. 7. Folketrygdfondet shall seek to be represented, directly or by proxy, in the Shareholders’ Meetings of companies in which it is invested. Folketrygdfondet may be represented on the Election Committees, Shareholders’ Committees and Corporate Assemblies of investee companies. Folketrygdfondet shall not be represented on the Boards of Directors of investee companies. 8. Folketrygdfondet evaluates the handling of environmental, social and corporate governance issues on the part of companies. This involves evaluation as to what guidelines the company has adopted, how these guidelines are followed up through relevant measures, and to what extent the company reports on the implementation of the guidelines. In addition, the extent to which the Board of Directors is involved in this effort is evaluated. 9. As far as investment in Norwegian equities is concerned, Folketrygdfondet uses exercise of its ownership rights and dialogue with the company as tools to achieve changes in conformity with the principles guiding the investment activities of Folketrygdfondet. If dialogue does not produce results, Folketrygdfondet may eventually divest its holdings in the company.
10. Folketrygdfondet monitors all Norwegian companies in which Folketrygdfondet has made credit investments. Any company that violates Folketrygdfondet’s principles for responsible investment activities may be excluded from the investment universe by the Executive Board unless the violation is remedied.
11. As far as investments in Nordic equities or Nordic fixed-income securities are concerned, the Ministry of Finance notifies Folketrygdfondet of the exclusion of companies from the investment universe on the basis of the recommendations of the Council on Ethics for the Government Pension Fund Global.
12. Folketrygdfondet shall annually publish the outcome of its efforts relating to responsible investment activities. The reporting shall be done with due care and discretion, and no company-sensitive information shall be published.
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