21.11.2017

Carbon intensity of investments clearly lower than the general market

Mandatum Life has measured the carbon footprint of the unit-linked assets it manages for the second time. The annual carbon footprint of the investments was 685,828 CO2 tonnes, which is 66 per cent relative to the market indices. Managing the climate risks of investments is one of the focal points of Mandatum Life’s responsible investment operations.

The carbon footprint of investments is a measure of the investment objects’ annual carbon dioxide emissions, which Mandatum Life Investment Services Ltd. has committed to measuring and publishing every year as part of the UN’s Montréal Pledge initiative.

The results reported this year are not directly comparable with the figures published last year, as the co-operation partner ISS Ethix (formerly South Pole Group) changed its measurement methods for fixed income investments. To enable a comparison between this and last year’ results, the results for last year have been re-calculated according to the current method of calculation.

Measurement results (last year’s re-calculated figures in parentheses):

  • In absolute terms, the carbon footprint of investments was 685,828 CO2 tonnes (486,745)
  • The carbon intensity relative to the benchmark indices was 66% (56)
  • The carbon intensity of equity investments relative to the benchmark indices was 63% (62)
  • The carbon intensity of fixed income investments relative to the benchmark indices was 67% (54)

The carbon footprint of the investments increased due to the nearly 40% growth in the managed customer wealth that is the object of the measurement.

“The key objective of measuring the carbon footprint and carbon intensity of investments is to identify risk concentrations and to take action on them. The carbon intensity declined in 21 out of 27 investment objects. The development was even brisker in the benchmark market indices. In terms of the environment, this is an excellent development,” says Carolus Reincke, Head of Multi-Asset Solutions.

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 portfolio management service, per the situation on 30 June 2017
  • The measurement covers approximately 90 per cent of the unit-linked investment assets managed by Mandatum Life Investment Services Ltd.
  • Consultative wealth management or index investment baskets were not taken into account in the measurement
  • The carbon footprint of investments was measured in co-operation with ISS Ethix
  • The carbon footprint of the investee companies is based on ISS Ethix’s data as per the end of 2016

For more information, please contact:
Carolus Reincke, Head of Multi-Asset Solutions, carolus.reincke@mandatumlife.fi, tel. +358 (0) 50 355 4540
Niina Riihelä, Vice President, Marketing and Communications: niina.riihela@mandatumlife.fi, tel. +358 (0) 40 728 1548