SUSTAINABLE INVESTMENT

Sustainable investments mean that issues related to the Environment, Social impacts and Corporate Governance (ESG) are taken into consideration. For Tundra, the decision to incorporate ESG issues in the investment process is based on a commercial perspective. Tundra has made the assessment that corporate behaviour with regard to sustainable issues will have a substantial impact on a company’s long term competitiveness and should be taken into consideration in the investment process.

  • Environment (E) – A good environmental policy reduces the risk of future clean-up costs and production stoppages.
  • Social (S) – The way a company treats its employees affects its long term ability to attract appropriate skills. A wage that violates local laws, for example, means a risk that we as investors could underestimate the long-term cost levels of a company.
  • Governance (G) – Corporate internal regulations and policy instruments for combating corruption are important for many reasons. Improperly completed procurement processes involve a risk of revision and revenue loss at a later stage. There is a risk, therefore, that investors are not fully aware of the competitiveness of the underlying business. Internal corruption drains the company’s operations of resources that could be used for investment or distribution to shareholders.

Tundra’s sustainable research

Tundra is one of the few asset managers worldwide to have a dedicated team engaged in for sustainable research and dialogue with frontier market companies. The team comprises a Head of ESG and ESG-researcher based in Stockholm, and a senior ESG-analyst based in Tundra’s Karachi research office. We have a unique chance to follow corporate behaviour locally.

In addition to our internal research capability, we have also teamed up with Sustainalytics as an external research partner on sustainable issues.

Tundra has signed the global UN-supported initiative Principles for Responsible Investments (PRI).

Tundra is also supporting the Carbon Disclosure Project (CDP), an international collaboration aiming at increasing companies’ awareness on climate change through a more transparent reporting on emissions of greenhouse gases.

Tundra has also been a member of SWESIF since 2011.