Mistra’s asset management is intended to reflect the Foundation’s remit: helping to solve environmental problems and working for sustainable development. In doing so it should maintain a reasonable balance with the requirements, laid down in the statutes, of a good return and limited risk.In this field, there are several expressions that describe asset management for sustainable development. Mistra uses the term ‘socially responsible investment’ (SRI) in a broad sense. For Mistra, the notion of SRI comprises three dimensions: financial, ecological and sociocultural. However, the term can be interpreted differently, depending on who uses it and the user’s background.
Initially, Mistra chose to apply exclusion criteria based on UN agreements and conventions signed by Sweden, the International Labour Organisation (ILO), environmental conventions, the Convention on the Rights of the Child and so forth. The emphasis has now shifted to positive selection, in which we apply a ‘best practice’ (benchmarking) model. Mistra’s asset managers have different methods and varying proportions of environmental and ethical information in their management models. Mistra is monitoring activities closely to learn more about asset management and be able to influence it in the future.
History
1995
Mistra held a seminar, ‘Environment — Financial Risks and Opportunities’, on asset management for sustainable development.
2000
Mistra decided that its asset management should reflect its remit to solve environmental problems to bring about sustainable development.
A KPMG study of how environmental criteria affect financial return was commissioned.
2001
During the spring, an investigation yielded documentation for a new investment policy with a sound balance among the various requirements.
A report entitled Screening of Screening Companies, compiled by Miljöeko and SustainAbility, identified characteristics that Mistra regards as best practice in SRI. Accordingly, the Board decided that part of the Foundation’s investments should be chosen on the basis of positive environmental criteria.
2002
Mistra began adapting its asset management to environmental and ethical criteria by initiating a global policy with both positive and negative screening. In addition, an exclusion list of what to avoid started to be applied to European investment.
2003
An in-depth study by independent SRI analysts at SustainAbility and onValues began.
2004
The Values for Money report, presenting the results of the study in 2003, was issued in spring 2004.
Mistra conducted three public procurements, all with an SRI profile, to strengthen the environmental and ethical features of its asset management further and incorporate the lessons it had learnt.
Mistra became an associate member of Enhanced Analytics Initiative (EAI) in order to improve the knowledge base for its asset managers. EAI evaluates stock analysis companies and awards commissions to those that are best at providing investors with wide-ranging information on, and analysis of, non-financial factors in long-term investment.
2005
Mistra started its Sustainable Investment research programme.
Mistra became the first client of the American company Generation Investment Management LLP, which is ‘dedicated to long-term investing, integrated sustainability research, and client alignment’.
2006
Global Money Management, an international publication, distributed its 2006 Awards for Excellence. Mistra was the winner in the ‘Non-Profit Fund of the Year’ award category. It was Mistra’s strategy and implementation of asset management for sustainable development and SRI that impressed the editors and readers.
Mistra became the first investor when the Danish company BankInvest started its new ‘BI Global Emerging Markets Equities SRI’. This fund engages in assessment according to positive criteria combined with traditional negative screening.
2007
From 1 April 2007, Mistra’s entire assets were placed according to sustainability criteria. Accordingly, the aim was, by 2007 at the latest, to review the whole of Mistra’s portfolio and, as far as possible, bring it into line with environmental and ethical criteria.
