Statement on integration of sustainability risks into investment process of „Luminor investiciju valdymas“ UAB 2nd and 3rd pension pillar funds
Sustainability factors we consider in our investment process are environmental, social and employee matters, respect for human rights, anti‑corruption and anti‑bribery matters.
For consideration of sustainability factors in our investment portfolios we classify investments as direct investments and investments in collective investment undertakings.
Companies are excluded from our direct investments and financing universe if they are:
Furthermore, we exclude entities from our future direct investments and financing universe if they are engaged in the following environmentally relevant activities:
Regarding collective investment undertakings we invest only in financial instruments issued by investment managers who have signed United Nations Principles for Responsible Investment (UN PRI). For investments in Alternative Investment Funds we seek adherence to UN PRI principles during the investment due diligence process.
Assessment of the likely impact of sustainability risks on the return of the investments
We believe occurrence of an environmental, social or governance event or condition could cause an actual or potential material negative impact on the value of investments in our managed funds.
Empirical and academic research have shown that sustainability factor exposures impact financial assets’ risk and return characteristics, e.g.:
Overall, considering sustainability risks in investment process is crucial to achieving high and sustainable long‑term returns.