Sampo Group’s guiding policy on climate, biodiversity, and environment is the Sampo Group Code of Conduct. The Code of Conduct is reviewed annually and approved by Sampo plc’s Board of Directors. In addition, each Group company has adopted supplementary policies and guidelines for their own purposes.
Currently the Sampo Group companies work to raise awareness on biodiversity and investigate how to take biodiversity into account in their insurance and investment activities.
Fixed income and equity investments
Mandatum monitors its direct fixed income and direct equity investments regularly from a biodiversity perspective. If any kind of abuse or deficient processes come to light, Mandatum aims to engage with the investee company to find out how they intend to rectify their operations.
Mandatum follows the development of regulation, metrics, and tools and strives to develop its own investment analysis when it comes to biodiversity. The analysis tools used by Mandatum already partially include biodiversity in the data produced on investee companies.
In indirect fixed income and equity investments made through funds, Mandatum evaluates biodiversity aspects as a part of the fund's investment process, along with other sustainability factors.
Mandatum also follows the development of the Taskforce on Nature-related Financial Disclosures (TFND) framework.
Direct real estate investments
Nature plays a big role in the built environment. Green spaces and vegetation protect against noise and heat, for example, and absorb flood and storm water. In addition, green spaces provide a habitat e.g. for pollinating insects.
In Finland, the land use planning conducted by the municipalities guide the planning and positioning of parks and green spaces. Land use planning also sets the minimum level for biodiversity in direct real estate investments. In addition, in the direct real estate investments managed by Mandatum, the possibility of actively increasing solutions that support the surrounding ecosystem is examined on a case-by-case basis. The implementations vary based on site-specific characteristics, for example from investments in green spaces to pollinator nesting habitats. Biodiversity is taken into account in acquisitions, maintenance, and in sustainability certifications.
Externally managed real estate investments managed by external managers
The MAM European Real Estate strategy, which has circa 350 million euros in commitments, forms the majority of the real estate investments managed by external managers. The strategy invests mainly through closed-end funds in the Western European real estate market. Sustainability factors play an essential role in the MAM European Real Estate strategy. For example, in accordance with the strategy of the latest investment basket, European Real Estate III, the purpose is to build a portfolio consisting mainly of green properties.
In these investments, the external manager takes biodiversity aspects into consideration already in the evaluation phase of a potential investment. In general, biodiversity aspects are considered when mapping the possibilities of the property and its surroundings and yard areas, including the possibility of adding green spaces in the investment plan.
Mandatum conducts an annual sustainability survey for external managers, which includes questions on biodiversity. This provides a tool for monitoring development.
Examples of practical actions implemented by external fund managers during the ownership period are:
- Continuous assessment of biodiversity or finding a suitable partner that promotes biodiversity when implementing the investment plan.
- Local surveys, including surveys of biodiversity issues, in the community surrounding the property.
Creation of replacement forests or nature reserves in connection with the construction of new buildings.