News 29.4.2021

Ilmarinen strengthens its collaboration with international investors to slow down climate change – joined IIGCC

Ilmarinen increases its collaboration with other institutional investors. It has joined IIGCC – Institutional Investors Group on Climate Change. By joining forces internationally, institutional investors can make real changes happen to slow down the climate change.

Being a member, Ilmarinen is part of co-creating and sharing practices that will enable to reach the net zero targets. Already a year ago, Ilmarinen set a new ambitious target: to achieve a carbon-neutral investment portfolio by the end of 2035.

– We are currently enhancing our strategies and building our road map to reach our goal. As nobody has yet figured out how to decarbonize all the asset classes, it makes a lot of sense to work with others. Setting a target is one thing, but making the changes actually happen across all asset classes is another thing, says Karoliina Lindroos, Head of Responsible Investment at Ilmarinen.

Need for transparent, reliable and consistent data

Not having enough reliable and consistent climate-related data across asset classes  is one significant bottleneck for investors at the moment.

– It would be important that the investors have a shared opinion regarding the data. What data to include, how should it be measured and what is the logic behind. We are hoping to include solid and reliable forward-looking climate data to our decision-making process for our investments, Lindroos says.

Institutional investors want to lead the change

IIGCC was set up almost 20 years ago with the aim of joining investors’ forces to slow down the climate change. Having currently more than 300 members in 22 countries, the organization aims to shift capital’s focus to low carbon activities and companies. The members mainly represent institutional investors and asset managers.

– Previously climate change was only a niche issue for investors. Now it has become the major concern for all, as it represents a potential global catastrophe. Investors have changed their mindsets from protecting risks to leading the way to green economy. For example, our Paris Aligned Investment Initiative has gathered more than 110 investors together. Sharing best practices and developing the tools investors need to take action is crucial, describes Daisy Streatfeild, Investor Practices Program Director at IIGCC.

Lindroos adds that having the climate change issues on the agenda also provides opportunities for institutional investors: how to pick those companies that have the best chances, best innovative products and services that are suited to the future low-carbon economy.

– I hope that we at Ilmarinen can be at the forefront in creating examples, how to decarbonize across asset classes. For us, responsibility is not just one corner of our portfolio. Rather it is a mindset that guides all our investment decisions. However, although we are ambitious, we are also humble when dealing with these new issues.

Streatfeild stresses that when over 300 investors join forces to fight climate change and start reallocating their assets accordingly, the impacts will be huge. This will force companies to act.

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News 22.4.2021

Ilmarinen became a seed investor in a new Low Carbon Fund  with 170 million euros

Ilmarinen has become a seed investor in AXA IM’s new mutual fund, the AXA WF US High Yield Low Carbon Bonds Fund, with 170 million euros. The fund is one of the first of its kind globally. The fund’s investment approach is fully ESG integrated and particularly focused on the carbon and water intensity scores of issuers. The investment is part of Ilmarinen’s overall responsible investment strategy. 

Ilmarinen became a seed investor in a new Low Carbon Fund  with 170 million euros
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