Ownership Policy

LSR's ownership policy applies to all of the fund's investments and is intended to ensure continuity in the exercise of shareholder rights. The policy discusses LSR as an investor, how the fund's shareholder rights are applied and which main considerations are taken into account regarding issuers' governance practices. The policy covers all asset categories, such as listed shares, bonds and funds’ share certificates. The implementation of the policy takes into account the interests of each department, and the fund can therefore apply itself in different ways depending on the circumstances. You can find the Ownership Policy of LSR here.

UN PRI - UN criteria for Responsible Investment

LSR signed the United Nations criteria for responsible investments (UN PRI) and with that the fund has committed to look at environmental factors, social factors and governance factors (ESG) when evaluating and making investment decisions. Principles for Responsible Investment is an international association of investors who work together to implement certain basic criteria for responsible investment and receive the support of the United Nations.

The six Principles of PRI are as follows:

• We will incorporate ESG issues into investment analysis and decision-making processes.
• We will be active owners and incorporate ESG issues into our ownership policies and practices.
• We will seek appropriate disclosure on ESG issues by the entities in which we invest.
• We will promote acceptance and implementation of the Principles within the investment industry.
• We will work together to enhance our effectiveness in implementing the Principles.
• We will each report on our activities and progress towards implementing the Principles.

CIC - Investments in Environmentally-Friendly Solutions

LSR was one of thirteen Icelandic pension funds that signed a declaration of intent on behalf of CIC - Climate Investment Coalition - whose purpose is to promote increased investments in clean energy sources and environmentally-friendly solutions. With its participation, LSR commits itself to investments in clean energy sources until the year 2030 and so does its share to achieve the goals of the Paris Agreement. Therefore, an increase in investments classified as sustainable and responsible investments, including investments in clean energy sources, can be expected in the coming years.

IcelandSIF

LSR is one of the founding members of the organisation IcelandSIF - Iceland Sustainable Investment Forum. Their purpose is to increase investors' knowledge of the methodology of sustainable and responsible investments and to increase the discussion on responsible and sustainable investments.

Festa

LSR is a member of Festa — a centre for sustainability. Festa works with the aim of increasing knowledge about the sustainability of companies, institutions and others, as well as encouraging co-operation and actions in that field. By connecting different parties such as companies, municipalities, institutions and individuals, the company promotes co-operation and actions that increase sustainability in society.