GAPP Principle 21
SWFs view shareholder ownership rights as a fundamental element of their equity investments’ value. If an SWF chooses to exercise its ownership rights, it should do so in a manner that is consistent with its investment policy and protects the financial value of its investments. The SWF should publicly disclose its general approach to voting securities of listed entities, including the key factors guiding its exercise of ownership rights.
Status: Implemented
The rationale for the exercise of ownership rights is to safeguard the financial interests of the GPFN in the long run. High financial return over time is considered conditional upon sustainable development in economic, environmental, and social terms, as well as well-functioning, legitimate and effective markets. The mandate requires that Folketrygdfondet`s approach to the responsible management of portfolio investments be based on recognised principles and standards, see response to principle 19 for further information.
The mandate states that Folketrygdfondet is to publicly disclose the principles for responsible management and the use of measures underpinning such efforts. The operational manager has also defined key ownership issues considered of financial relevance, including but not limited to (i) strategy, capital structure and financial targets, (ii) anti-corruption, (iii) board and executive remuneration, (iv) human rights and workers’ rights, (v) climate risk, (vi) environmental risk, and (vii) bond issuance. Folketrygdfondet exercises the ownership rights associated with Fund investments through various measures, including company engagement, voting at general meetings and participation in nomination committees.
The Board of Folketrygdfondet gives prominence to a high degree of transparency in the exercise of ownership rights associated with the GPFN portfolio investments. An account of Folketrygdfondet’s ownership efforts is published with the annual report. Information on the exercise of ownership rights is published on the website of Folketrygdfondet.
Sources: GPFN Mandate, Folketrygdfondet’s website.