Finland's Ilmarinen Mutual Pension Insurance Company has strengthened its climate efforts and committed to setting science-based short-term emission reduction targets in accordance with the Science Based Targets initiative (SBTi).

Science-based targets will guide Ilmarinen's investment activities toward emission reduction pathways in line with climate science, to achieve clear emission reductions by 2030.

As it has now committed to the SBTi, the company will submit short-term emission reduction targets to the SBTi for assessment, which will be assessed and reviewed based on SBTi criteria.

"By committing to science-based targets, we are advancing our climate plan for 2026–2030. Our work is in line with the goals of the Paris Climate Agreement," Ilmarinen director of responsible investment, Karoliina Lindroos, explained.

"We monitor the progress of the goals and report them according to internationally comparable principles.”

The company set out its climate plan for 2026–2030 last month and decided to create a more ambitious plan after it exceeded all its climate targets for 2021–2025 ahead of schedule.

As established in its new climate plan, Ilmarinen aims to reduce the carbon footprint of its investments by reducing carbon intensity and financed emissions – emissions generated by investment targets in which Ilmarinen invests pension assets. The investor’s share of these emissions is calculated in Ilmarinen’s carbon footprint.

Additionally, Ilmarinen is increasingly directing capital to companies that have science-based climate targets and offer climate solutions.

The company also indicated that, as a long-term goal, it will continue to participate in the Paris Aligned Asset Owners commitment, which aims to align investment portfolios with the Paris Agreement.

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