The majority of Finnish earnings-related pension assets are invested responsibly according to several metrics and initiatives, analysis by the Finnish Pension Alliance (Tela) has shown.

It found that most of the €251bn of invested assets were used in the promotion of responsible investment projects and cooperation, as at the end of 2023.

Depending on the metric or project, between 60 per cent and 97 per cent of the assets were invested responsibly.

For example, at least 61 per cent of Finnish earnings-related pension assets fall under the scope of Nature Action 100, while some of the remaining assets are covered by the initiative via external fund managers used in investment.

The analysis also looked through the lens of the UN-supported Principles for Responsible Investment (PRI) framework, with almost 97 per cent of assets invested in line with the framework.

This included the seven largest earnings-related pension providers and equals €242bn out of the €251bn of assets, with some of the remaining assets covered through external fund managers.

At least 62 per cent of asset fall under the scope of the Institutional Investors Group on Climate Change (IIGCC), while 88 per cent fall within Climate Action 100+.

“To ensure they’re investing responsibly, Finnish pension providers can use international responsibility commitments, harmonised reporting frameworks and impact initiatives,” commented Tela analyst, Kimmo Koivurinne.

“Preventing the decline in natural environments has risen higher on the responsible investment agenda. To that end, Finnish pension insurers have engaged with commitments such as Nature Action 100.

“By being part of shared initiatives with large institutional investors, earnings-related pension providers can influence what large companies with high environmental impact do.

“In other respects, the results of the analysis show hardly any change on previous years. Finnish pension providers’ commitment to the reviewed projects has remained at the same level.

“In addition to these projects, pension providers conduct a range of sustainable investment projects. They set new targets for their investments every year. The sustainable development toolbox is constantly expanding.”

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