Climate Policy guides our investment operations. We have set for ourselves concrete, ambitious goals that aim to contribute to mitigating the climate change. The Climate Policy also aims to guide the investee companies and asset managers to take sustainability aspects better into account.
Climate change is a significant and long-term threat to the future of humanity and eco-logical sustainability. It will alter how the economy and many companies operate in the coming years. Taking changes into account is especially important for a long-term investor such as Ilmarinen. We are continuously developing our investment operations with the goal of establishing a progressive and systematic approach for taking climate change impacts into account. The Climate Policy helps us to reach our investment targets and take into account the limits set by the climate on the economy
Climate change is a significant financial risk for investment operations. The risk could be realized, when concrete impacts of climate change weaken companies’ operating environment, legislation increases companies’ expenses, or investors begin avoiding certain companies or sectors on the basis of estimated climate risks. We sell the shares of individual companies if we identify immediate negative financial impacts caused by climate risks related to the company.
On the other hand, climate change also opens up new opportunities, for instance, for companies that generate clean-tech solutions and thereby aim to mitigate climate change or help adapt to it. We actively seek investees whose business relates, for example, to renewable energy, clean water or improving resource efficiency. Companies that come up with solutions to global challenges as part of their business can benefit from faster growth than the markets and can thus also be good investments
The objective of the Climate Policy is to influence not just Ilmarinen’s operations, but also its partners, and thus support climate change mitigation. As an active owner, Ilmarinen strives to ensure that its investee companies take the sustainability aspects of their operations into account to an even greater extent as part of profitable business. Ilmarinen expects the companies it has a holding in to report on their carbon footprint and other climate impacts openly and comprehensively. It is also important for the companies to assess their strategic choices and investments from a climate change perspective.