At least 96 per cent of Finnish earnings-related pension assets have been invested in line with the UN’s Principles for Responsible Investment (PRI), analysis from Tela has found.
Finnish earnings-related pension providers invested a total of €238bn in assets, as of the end of 2022, with at least €229bn being invested in line with the PRI.
Additionally, some of the assets fall within the scope the principles through the external asset managers used in investment activities, who are required to commit to the principles.
The principles mean that investment activities are committed to the consideration of ESG factors.
Overall, depending on the commitment or project, at least 49-96 per cent of Finnish earnings-related pension assets were invested responsibly.
At least 87 per cent of earnings-related pension assets fell within the scope of the Climate Action 100+ initiative, while 62 per cent fell within the scope of the International Investors Group on Climate Change.
The two reporting commitments selected for review, CDP and TCFD, cover 60 per cent and 96 per cent of earnings-related pension assets, respectively.
Just under half (49 per cent) of assets were covered by the carbon-neutral goal for all investment property set for 2035.
“An extensive toolbox is available for the responsible investment of earnings-related pension assets,” commented Tela analyst, Kimmo Koivurinne.
“Most pension assets are invested in on the international markets, and the share of investments in Finland is less than a quarter nowadays.
“To ensure they’re investing responsibly, Finnish pension providers can use international responsibility commitments, reporting frameworks and investors’ joint initiatives.
“The results of the analysis do not show a change on the year before. Finnish pension providers’ commitment to the reviewed projects has remained the same.
“However, the major pension providers have supplemented their responsible investing toolboxes with projects and goals concerning individual asset classes, such as property investments.”
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