Kommunal Landspensjonskasse Gjensidig Forsikringsselskap (KLP)

In terms of its approach towards impact management, KLP acknowledges that its financing activities have both positive and negative impacts and identified and prioritised its impacts through a materiality assessment process. KLP has an engagement policy where it describes its approach on sustainability themes and impact topics with clients and investees. In terms of female representation in leadership positions, KLP has a gender-balanced board of directors where 3 out of 7 members are women. Additionally, KLP discloses actions it takes to address any pay gaps to achieve pay equity.

KLP discloses its absolute financed emissions and has set a target of net-zero financed emissions by 2050. The pension fund requires its clients to have a strategy aligned with the Paris Agreement and, as a member of Climate Action 100+, it collectively engages with its clients on the topic of climate change. As a signatory to the Finance for Biodiversity Pledge, the financial institution is committed to minimising its negative impacts on nature and biodiversity.

KLP has a publicly available policy statement that expects its business relationships to commit to respecting the ILO core labour rights. The pension fund discloses the proportion of women in its total direct operations workforce for each employee category. KLP also discloses the amount of finance it directs towards low-income developing countries.

While KLP’s board supports the implementation of climate-related issues, it is unclear that the end responsibility for sustainability issues lies with this body. In addition, KLP has an opportunity to link the remuneration of its executive and management teams to sustainability performance criteria. There is no evidence that KLP has a public commitment to gender equality and women’s empowerment. Although the financial institution has an engagement policy that includes a framework with success criteria, the pension fund could include escalation points in the policy.

KLP could disclose interim emissions reduction targets at the group level, such as a 45% reduction in financed emissions by 2030. No evidence was found regarding the pension funds approach to fossil fuels that spans across the fossil fuel value chain, such as the amount or share of finance it directs towards fuels, or its stance on financing companies with new fossil fuel projects.

There is no evidence that KLP has a publicly available policy statement committing it to respect human rights laid out in the UN Guiding Principles and the pension fund could describe its process for identifying human rights risks and impacts through its relevant financing activities. To provide transparency on financial inclusivity, the financial institution has an opportunity to disclose the amount of finance directed towards, for example, women-owned businesses, small- and medium-sized enterprises (SMEs) or low-income developing countries. There is no evidence that the financial institution discloses the amount of finance directed towards SMEs.