Our approach to sustainability
In order to ensure a stable and sustainable development globally, it is increasingly important to address sustainability, social and governance related factors, including the factors impacting global warming and climate change, limiting pollution of the environment, enforcing civil rights, fighting against corruption, work environment, health and security matters, and other issues. Considering the importance of the sustainability factors and the development of the legislation and continuing education of the society in this area, more attention is paid to sustainable investments. Avoiding the investments that are signifficantly exposed to the risks related to the sustainability or a reduction of such investments also reduces the total risk of the investments and provides at least neutral or even positive impact to the yield on the investments.
The primary aim of the mutual funds and the pension plan managed by Integrum Asset Management IPAS is not the facilitation of the sustainable investments. However, to follow the best practice in corporate governance and to reduce the negative impact to the sustainable development, before making a decision on the investment, the company considers the sustainability ratings of the issuer or the country by the internationally recognized external data sources. The company considers this approach to the sustainability risk management as adequate and can ensure the positive impact towards the reduction of the sustainability risks.
The Company notes that the remuneration of the Company's employees, including asset managers, is not directly linked to the achieved performance result to avoid motivation to take unreasonable short-term risks. Consequently, asset managers are not motivated to invest in financial instruments that have a disproportionately high sustainability risk, although a higher potential return.
More elaborated information regarding our approach towards reduction of sustainability risks is available in the Sustainability policy.The aim of the policy is to determine the approach to integration of the sustainability (environmental, social and governance) factors within the management of the mutual funds and the pension plan managed by Integrum Asset Management IPAS. The policy has been developed considering the principles as defined in Regulation (EU) 2019/2088 of 27 November 2019 on sustainability-related disclosures in the financial services sector.