Ilmarinen invests in new climate-focused exchange-traded funds
Ilmarinen is an anchor investor in new climate-focused iShares ETFs in the USA and Japan, launched by the US asset management company BlackRock Inc. (NYSE: BLK).
Ilmarinen invested EUR 2 billion ($2.1 billion USD) in the US fund and EUR 745 million ($800 million USD) in the Japanese fund. The investments are a continuation of Ilmarinen’s climate-oriented investment policy.
“The investments may reduce the sensitivity of the passive stock portfolio to the risks resulting from climate change. The business environment will change globally over the next few years and decades due to climate change,” explains Senior Portfolio Manager Juha Venäläinen.
“We believe that companies that reduce the climate impact of their operations or try to benefit more fully than their competitors from the opportunities resulting from the fight against climate change are better investments for long-term investors compared to their peer group,” says Venäläinen.
“Ilmarinen’s goal is to achieve a carbon-neutral investment portfolio by the end of 2035. Climate change risks and opportunities can also be accounted for in index investments. These investments are part of our actions to promote our climate goals,” says Karoliina Lindroos, Head of Responsible Investment and Sustainability.
Climate-focused indexes underlying the funds
The new iShares ETFs track the MSCI Climate Action indexes. Ilmarinen has contributed to the development of the indexes, which select the top half of companies in each sector based on an assessment of climate considerations. These considerations include current emissions intensity, emissions reduction targets, green business revenue, and climate risk management.
Ilmarinen will continue to increase the climate emphasis of its ETF investments. The share of climate-focused investments of Ilmarinen’s passive equity investments is more than 85 per cent.
Juha Venäläinen, Senior Portfolio Manager, +358 50 575 8618, email@example.com
Karoliina Lindroos, Head of Responsible Investment and Sustainability, +358 40 577 2203, firstname.lastname@example.org
Let’s prepare by saving electricity
A year ago, saving energy, the ‘Down a degree’ campaign and power system support procedure were acute themes as Europe began preparing for a serious electricity shortage. Saving energy still matters.
Ilmarinen’s Interim Report 1 January to 30 June 2023: Return on investments rose to 3.7 per cent, solvency strengthened and cost-effectiveness continued to improve
The return on Ilmarinen’s investment portfolio was 3.7 (-6.2) per cent, i.e. EUR 2.1 billion. The market value of investments grew to EUR 58.2 (56.3) billion. The long-term average return on investments was 5.8 per cent as of 1997. This corresponds to an annual real return of 3.8 per cent.
Ilmarinen as an anchor investor in European climate fund
Ilmarinen continues its investment strategy that has a strong focus on climate change by investing EUR 580 million in a new European equity fund which selects investees based on climate indicators.