‘Massive Risk’ Drives ESG Bets at $108 Billion Finnish Funds
Two of Finland’s biggest pension funds, with combined assets of $108 billion, are determined to make their portfolios carbon neutral over the next decade and a half, in a race to dodge the fallout of global warming before it’s too late.
“Climate change is such a massive risk factor for companies in the future,” Anna Hyrske, head of responsible investments at Ilmarinen Mutual Pension Insurance Co., said in an interview.
Climate change has been on the agenda for years, but the sense of urgency has only recently intensified. The bet now is that the best way to protect returns is to limit investments to companies that take climate change seriously.
“The carbon neutrality target will push us toward better performance,” Hyrske said. relates to ‘Massive Risk’ Drives ESG Bets at $108 Billion Finnish Funds Anna HyrskeSource: Ilmarinen Mutual Pension Insurance Co.
To help reach the 2035 climate goal, Ilmarinen has developed a portfolio-management tool that gives it “a better view of companies’ environmental, social and governance abilities, and exposes risks and opportunities,” she said.
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