Stockholm (NordSIP) – Ilmarinen, the Finnish mutual pension insurance company, invested €2 billion in a new passive climate-focused iShares ETF in the USA and €745 million (US$800 million USD) in the equivalent Japanese fund. The ETF were launched by BlackRock and the investments are a continuation of Ilmarinen’s climate-oriented investment policy.
“The investments may reduce the sensitivity of the passive stock portfolio to the risks resulting from climate change. The business environment will change globally over the next few years and decades due to climate change,” explains Senior Portfolio Manager Juha Venäläinen.
“We believe that companies that reduce the climate impact of their operations or try to benefit more fully than their competitors from the opportunities resulting from the fight against climate change are better investments for long-term investors compared to their peer group,” says Venäläinen.
The new iShares ETFs track the MSCI Climate Action indexes. Ilmarinen has contributed to the development of the indexes, which select the top half of companies in each sector based on an assessment of climate considerations. These considerations include current emissions intensity, emissions reduction targets, green business revenue, and climate risk management.
“Ilmarinen’s goal is to achieve a carbon-neutral investment portfolio by the end of 2035. Climate change risks and opportunities can also be accounted for in index investments. These investments are part of our actions to promote our climate goals,” Karoliina Lindroos, Head of Responsible Investment and Sustainability, concludes.