ILMARINEN’S SUSTAINABILITY REPORT 2016: CUSTOMERS INVOLVED IN THE DEVELOPMENT OF SERVICES
Ilmarinen is a mutual employment pension insurance company owned by its clients – taking care of our clients’ pension cover and pension assets is the cornerstone of our corporate responsibility. In 2016, customers were involved in the development of services. In investment operations, climate impacts were a special focus area.
“Ilmarinen is responsible for the pension cover of approximately every third Finn working in the private sector. Responsible operations are required for the cost-effective and high-quality management of this statutory basic task. Responsibility is one of Ilmarinen’s values and an integral part of all of its operations,” says Senior Vice President Päivi Sihvola who is in charge of corporate responsibility at Ilmarinen.
For Ilmarinen’s customers, responsibility shows above all in high-quality insurance and pension services. The renewal of the pension processing system caused temporary delays in the processing of pension applications early in the year, but the situation improved towards year-end. The customer satisfaction measurements published in the Sustainability Report reveal that satisfaction with Ilmarinen’s services increased markedly year-on-year.
In 2016, Ilmarinen launched its innovation process called Wauhdittamo, where representatives of customer companies, together with Ilmarinen’s employees, create ideas and develop new services to improve the earnings-related pension sector and working life. Through bold, agile and open development Ilmarinen wishes to strengthen its services in managing disability risk and to take on a new role in supporting the growth and success of Finnish companies.
In addition to taking care of pension cover, Ilmarinen offers its customer companies services to support work capacity and a better working life, which also holds great significance to society. In the private sector alone, the costs resulting from disability were estimated last year to equal some EUR 4.3 billion. Thanks to new digital well-being at work and work capacity management services, the effectiveness of Ilmarinen’s operations will continue to grow.
Strengthened climate perspective in investments
By investing pension assets profitably, securely and responsibly Ilmarinen also bears responsibility for the financing of pensions for future generations. In 2016, Ilmarinen took major steps in fostering responsible investment. One of these steps was drawing up a Climate Policy.
The Climate Policy strengthens the climate perspective in Ilmarinen’s investment operations and sets concrete goals for the next few years. At the end of 2016, the carbon footprint of Ilmarinen’s investment portfolio was 358 tonnes of carbon dioxide equivalents per million euros of net sales. This is more than a quarter less than in the previous year, and 18 per cent less compared to the benchmark index. The carbon footprint of real estate investments and property development was also analysed during the year, and the calculations steer activities in a more sustainable direction. Significant energy-savings measures were also carried out in Ilmarinen’s properties, and the savings target of the energy efficiency agreement that ended in 2016 was exceeded by 30 per cent.
Climate change results in not only risks but also opportunities for investors. Ilmarinen actively seeks investees whose business relates, for example, to renewable energy, clean water or improving resource efficiency. At the end of 2016, Ilmarinen’s investments in sustainable solutions came to EUR 520 million, or close to 6 per cent of the net sales of direct listed equity investments. The objective is to double this percentage by 2020.
The Sustainability Report also describes how Ilmarinen as an owner engages in promoting responsibility and good governance in the companies it owns. In 2016, 13 companies were subjected to the engagement process on account of norm violations relating to working conditions, child labour, corruption and environmental impacts, among other things. In addition, Ilmarinen contacted dozens of companies in corporate responsibility matters related to, among other things, good governance and climate impacts and the related reporting.
Ilmarinen carries out engagement processes both alone and jointly with other investors. The engagement actions implemented together with Nordic partners (Nordic Engagement Cooperation) are described in a separate annual report.
Corporate responsibility reporting evolving
In addition to taking care of pension cover and pension assets, corporate responsibility at Ilmarinen also means compliance with the Code of Conduct and other regulations, principles and values, ensuring data protection, transparency and open stakeholder dialogue. Each Ilmarinen employee completed the Code of Conduct training in 2016, which goes to show that corporate responsibility is part of every employee’s job profile. In addition, responsibility means taking care of the company’s personnel, fostering diversity and ensuring the fairness of remuneration. All of these aspects and the achievement of the targets related to them are described in the Sustainability Report.
Ilmarinen has reported on its financial, social and environmental responsibility since 2007. The Sustainability Report was drawn up for the second time in accordance with the guidelines of Global Reporting Initiative (GRI). For the first time, the report was assured by an independent assurer.
In addition to the Sustainability Report, Ilmarinen publishes an online Annual Report which highlights the key facts and events for the year.
“The Annual Report and the Sustainability Report complement the financial information previously published in the financial statements. The importance of corporate responsibility reporting will grow next year with the entry into force of the EU directive concerning the reporting of non-financial information. By having our Sustainability Report externally assured, we are preparing for the upcoming change,” says Päivi Sihvola.
- Ilmarinen’s online Annual Report 2016
- Sustainability Report 2016 (pdf)
- Report of the Board of Directors and financial statements 2016 (pdf)
- Read more about corporate responsibility at Ilmarinen
- Nordic Engagement Cooperation annual report 2016 (pdf)
For more information, please contact:
Päivi Sihvola, Senior Vice President, Corporate Communications, Marketing and Human Resources, tel. +358 10 284 3590, +358 40 757 4992