25.05.2019

Mandatum Life’s investments’ carbon footprint clearly smaller than that of benchmark indices

The carbon footprint of unit-linked assets managed by Mandatum Life has been measured for 2019. The carbon footprint of all investments was 12% below the benchmark indices, and 30% below the benchmark index levels in equity investments.

In total, the annual carbon footprint of investments amounted to 1,151,030 CO2 equivalent tonnes, up 17% from the previous year due to an increase in the assets under management. The average carbon intensity of investments, which describes the ratio of the investee companies’ emissions to annual net sales, decreased from last year (5%).

“We are pleased to see that the climate impacts of our investments are significantly smaller than those of the index. Particularly in equity investments, the carbon dioxide emissions of the companies we own are clearly below the benchmark index. Considering all asset classes, our carbon footprint in relation to the invested capital decreased from last year,” says Carolus Reincke, Head of Multi-Asset Solutions, Mandatum Life.

“In 2018, Mandatum Life adopted even more stringent ESG criteria in assessing investees, which steers our overall investment operations in a more responsible direction.”

Summary of the carbon footprint of Mandatum Life’s investments 2018 (comparable figures for 2017 in brackets):

  • The carbon footprint of investments was 1,151,030 CO2 e tonnes (980,257)
  • The carbon footprint of investments 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 investments’ monthly reviews.

How the measurement was carried out:

  • The measurement covered the investment assets managed by Mandatum Life within the company’s own investment baskets, full-mandate wealth management and allocation investment baskets, per the situation on 31 Dec 2018.
  • The measurement was carried out by ISS Ethix.
  • The measurement covers approximately 90 per cent of the unit-linked investment assets managed by Mandatum Life Investment Services Ltd.
  • Consultative wealth management, structural investments or index investment baskets were not taken into account in the measurement.

The carbon footprint of unit-linked assets managed by Mandatum Life has been measured for 2019. The carbon footprint of all investments was 12% below the benchmark indices, and 30% below the benchmark index levels in equity investments.

In total, the annual carbon footprint of investments amounted to 1,151,030 CO2 equivalent tonnes, up 17% from the previous year due to an increase in the assets under management. The average carbon intensity of investments, which describes the ratio of the investee companies’ emissions to annual net sales, decreased from last year (5%).

“We are pleased to see that the climate impacts of our investments are significantly smaller than those of the index. Particularly in equity investments, the carbon dioxide emissions of the companies we own are clearly below the benchmark index. Considering all asset classes, our carbon footprint in relation to the invested capital decreased from last year,” says Carolus Reincke, Head of Multi-Asset Solutions, Mandatum Life.

“In 2018, Mandatum Life adopted even more stringent ESG criteria in assessing investees, which steers our overall investment operations in a more responsible direction.”

Summary of the carbon footprint of Mandatum Life’s investments 2018 (comparable figures for 2017 in brackets):

  • The carbon footprint of investments was 1,151,030 CO2 e tonnes (980,257)
  • The carbon footprint of investments 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 investments’ monthly reviews.

How the measurement was carried out:

  • The measurement covered the investment assets managed by Mandatum Life within the company’s own investment baskets, full-mandate wealth management and allocation investment baskets, per the situation on 31 Dec 2018.
  • The measurement was carried out by ISS Ethix.
  • The measurement covers approximately 90 per cent of the unit-linked investment assets managed by Mandatum Life Investment Services Ltd.
  • Consultative wealth management, structural investments or index investment baskets were not taken into account in the measurement.