Established Icelandic asset management company whose role is to manage clients’ assets with their best interests as the guiding principle.
In recent years, Stefnir has taken important steps toward becoming a leader in responsible investing. We are a signatory to the United Nations Principles for Responsible Investment (UN PRI) and a founding member of Iceland SIF, a platform that promotes knowledge and encourages discussion on responsible investing.
It is important to follow through on our commitments in a structured way. By using capital as a driving force, we can promote sustainable development while strengthening competitiveness and supporting future generations.
In managing funds, it is important to inform fund investors how we implement responsible investment methodologies across all of Stefnir’s operations.
Stefnir’s responsible investment policy outlines how environmental, social, and governance (ESG) factors are considered when investing in companies and other issuers.
Below is a brief overview of the key elements of Stefnir’s investment approach.
The ESG Committee operates in accordance with its rules of procedure, supports investment selection, and ensures that Stefnir’s responsible investment criteria are applied in practice. Employees of Stefnir who serve on the ESG Committee play a leading role in implementing responsible investment methodologies across all of the company’s operations.
Board members and employees of Stefnir are offered training through the PRI Academy in responsible investment methodologies. PRI Academy is a leading educational platform for those seeking to understand how environmental, social, and governance (ESG) factors affect company performance and create value for all stakeholders.
Stefnir integrates ESG considerations into the investment process of the funds it manages, where applicable. Particular attention is given to screening out companies that do not meet established ethical criteria, and a thematic approach is applied in funds where relevant.
In assessing specialized investment opportunities, due diligence is conducted to identify and highlight the key operational and financial factors of each company. Particular attention is given to ESG considerations in this process, with the scope of ESG analysis tailored to the nature of the investment under review.
Stefnir follows guidelines on the exercise of voting rights and exercises shareholder rights in line with the interests of the funds, including voting at shareholder meetings. Through active ownership, we seek to drive positive change, prioritising environmental, social, and governance (ESG) factors in both the short and long term.
Appendix I to the Responsible Investment Policy, approved by Stefnir’s ESG Committee on 21 January 2025. Relevant documents will be updated following the revision of this appendix.
Activity | Description | Negative screening | Positive screening |
|---|---|---|---|
Alcohol production | Companies generating revenue from the production of alcoholic beverages, as well as retailers, distributors, and suppliers. | X | |
Cannabis | Production and distribution of cannabis for non-medical purposes. | X | |
Fur production | Companies generating revenue from the production of fur or other products derived from animal skins. | X | |
Animal testing | Companies conducting animal testing not in line with EU legislation for activities other than pharmaceuticals (e.g. food additives). | X | |
Animal testing in healthcare R&D | Companies conducting animal testing for pharmaceuticals, medical devices, or biotechnology. | ||
Gambling | Companies generating revenue from gambling activities, including casinos and online gambling. | X | |
Mining | Mining operations not conducted in accordance with environmental impact assessment laws or that violate human rights. | X | |
Nuclear power production | Companies generating revenue from nuclear energy production. Does not include distribution or supporting services. | ||
Coal and oil sands | Companies engaged in coal or oil sands extraction. | X | |
Oil production | Companies generating revenue from oil production. | X | |
Pornography production | Companies generating revenue from the production of pornography. | X | |
Predatory lending | Companies primarily engaged in predatory lending practices. | X | |
Human rights violations (e.g. forced labour) | X | ||
Tobacco production | Companies generating revenue from tobacco products, including cigarettes, cigars, tobacco, and snuff. | ||
Controversial weapons | Landmines, cluster munitions, chemical weapons, biological weapons, and weapons of mass destruction. | X |
Negative screening: Not permitted to invest in business or sector.
Positive screening: Focus is placed on companies that contribute to positive developments within their industry and perform better than their peers, based on external assessments and Stefnir’s internal evaluation processes.
Best-in-class: The company or issuer that performs best among its peers, based on external assessments and Stefnir’s internal evaluation processes.
Investment in ETF funds is permitted where revenue derived from industries covered by negative screening constitutes less than 1% of the total revenue of the underlying companies within the fund.