Responsible investing

Investors have an influential role
in solving societal challenges
and slowing down climate change.

Carolus Reincke, Head of Multi-Asset Solutions

We believe that, in the long run, companies who operate responsibly will yield better results as investment objects, thanks to their more favourable growth prospects and more predictable cost development. The investment assets flowing into more responsible companies put these companies in a better position to succeed, and push other companies to improve their ways of operating.

 

Commitment to responsible investing

Mandatum Life invests its client assets responsibly, as responsibility forms a key part of our risk management process. We have signed the UN’s Principles for Responsible Investment (UN PRI).

According to the UN’s Principles for Responsible Investment (UN PRI), Mandatum Life is required to:
  • Incorporate environmental, social and corporate governance (ESG) issues into investment analysis and investment decision-making processes
  • Be an active owner and incorporate ESG issues into its ownership policies and practices
  • Seek appropriate disclosure on ESG issues by the entities in which it invests
  • Promote acceptance and implementation of the Principles for Responsible Investment (UN PRI) within the investment industry
  • Work together with other investors to promote the Principles for Responsible Investment within the investment industry
  • Report on its activities and progress towards implementing the Principles for Responsible Investment

Taking climate change into account and efficiently managing the climate risk in is one of the focal points of Mandatum Life’s investment operations. Mandatum Life has committed itself to measuring and reducing the carbon footprint of its investments over time.

We have signed the UN’s Montréal Pledge and committed to disclosing the carbon footprint of our investments annually.

Mandatum Life is part of the international Portfolio Decarbonization Coalition (PDC), which aims to reduce the carbon footprint globally, steer assets to companies with lower emissions and develop methods for reducing the carbon footprint of investments. Upon joining the network in 2015, Mandatum Life was its first Finnish member.

We are also a member of FINSIF (Finland’s Sustainable Investment Forum). One of Mandatum Life’s goals is to increase investors’ awareness of the opportunities offered by responsible investing and the risks of ignoring them.

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COLLABORATION WITH WWF FINLAND

We work together with WWF Finland to promote responsible investing and to mitigate climate change. We create concrete operating models and guidelines on how investors can lower the carbon dioxide emissions of their investments in practice. This helps steer investment assets to companies that operate sustainably in terms of the environment.

Responsibility as part of investment operations

Responsible investment reporting

As part of the commitment to the UN’s Principles for Responsible Investment, Mandatum Life has committed to reporting annually on the responsible investment practices that have been taken into use and on how the implementation of the UN’s Principles for Responsible Investment has been promoted.

The carbon footprint of investments is measured and reported on annually. In addition to the absolute carbon footprint of the investments, the carbon footprint of investment baskets and funds is compared with the relevant market index’s carbon footprint in order to improve comparability and transparency.

Summary of the 2018 results (previous year’s comparable figures in parentheses)

  • The carbon footprint of investments was 1,151,030 CO2e tonnes (980,257)
  • The carbon footprint relative to the amount of assets was 319 CO2e tonnes/million € (330)
  • The carbon footprint of equity investments relative to the amount of assets was 109 CO2e tonnes/invested million € (95)
  • The carbon footprint of fixed income investments relative to the amount of assets was 432 CO2e tonnes/invested million € (527)
  • The carbon footprint was –12% below the benchmark index level
  • The average carbon intensity of investments was 247 CO2e tonnes/million € of net sales and 3% above benchmark indices

The carbon footprints of individual investment baskets can be checked in the investment’s monthly review.

We also report on responsible investing as part of Sampo Group’s Corporate Responsibility Report.


Read the Corporate Responsibility Report