Climate Change Data

Mandatum Asset Management Ltd and Mandatum Life Insurance Company Limited

Climate Impact & Sustainability Data (2022)

Reporting Period: 2022

Environmental Metrics

Carbon Intensity:202 tCO2e/MEUR in 2021 (significantly below market average).

ESG Focus Areas

  • Climate Change
  • Biodiversity
  • Social Impact
  • Governance

Environmental Achievements

  • Reduced the carbon intensity of investments by half between 2017 and 2021.
  • Mandatum’s direct real estate investments earned four out of five stars in the Global Real Estate Sustainability Benchmark (GRESB) assessment.
  • Launched MAM’s first SFDR Article 9 fund with a positive net impact objective.

Social Achievements

  • Developed a more systematic method to assess the implementation of responsibility in the Private Debt program.
  • UI-MAM Senior Secured Loan fund aims to build a loan portfolio with an overall positive net impact on society.

Governance Achievements

  • Updated Responsible Investment Policy incorporating aspects of climate strategy, phasing out companies with >5% revenue from coal by 2030 and oil by 2040.
  • Strong scores in the UN PRI assessment of responsible investment across several asset classes.

Climate Goals & Targets

Long-term Goals:
  • Phase out companies that derive more than 5% of their revenue from oil by 2040.
Medium-term Goals:
  • Phase out companies that derive more than 5% of their revenue from coal from the investment portfolio by 2030.

Environmental Challenges

  • Insufficient data collection in real estate asset class.
  • Lack of commensurability and standardization of green bond criteria increasing greenwashing risk.
  • Areas for improvement identified in engagement and voting practices by UN PRI assessment.
Mitigation Strategies
  • Actively promoting real estate responsibility reporting and improving reporting on a case-by-case basis.
  • Paying special attention to the framework for green bonds, the projects financed, and business operations genuinely related to the green transition.
  • Developing Mandatum’s engagement principles and owner practices based on UN PRI assessment feedback.

Supply Chain Management

Responsible Procurement
  • Sustainable procurement practices promoted in portfolio companies.

Climate-Related Risks & Opportunities

Transition Risks
  • Regulatory changes
  • Market shifts
Opportunities
  • Investments in renewable energy and companies with credible transition plans.

Reporting Standards

Frameworks Used: SFDR, UN PRI, GRESB, TCFD