Climate-related metrics and targets
Sampo Group publishes climate-related metrics and targets for own operations and investment operations. Metrics are published on group level, but targets are set by the individual Group companies. Data may not be comparable from one year to the next due to changes in methodologies and group structure over the years but gives an indication of progress.
The Group companies strive to continuously develop metrics, calculation methods, and reporting related to sustainability data. More information on current metrics and targets related to GHG emissions and investments are available in the Sampo Group and the individual Group companies’ sustainability reports.
Own operations
Sampo Group measures the environmental impact of its own operations by calculating GHG emissions. Emissions reduction targets are set on subsidiary level, in order to acknowledge the characteristics of each individual company and its ability to set targets.
Own operations: metrics and targets
GHG emissions by scope, tCO2e
Sampo Group
| 2022 | 2021 | 2020* | |
| Scope 1 - direct GHG emissions | 1,188.0 | 1,867.5 | 1,515.0 |
| Scope 2 - indirect GHG emissions | 4,066.1 | 2,458.5 | 2,2886.6 |
| Scope 3 - other indirect GHG emissions | 15,586.0 | 6,314.9 | 6,925.1 |
| Scope 1-3 GHG emissions, total | 20,840.1 | 10,641.3 | 11,326.8 |
| GHG emissions per employee | 1.57 | 0.89 | 1.26 |
* Excluding Hastings
GHG emissions by company, tCO2e
Sampo Group
| 2022 | 2021 | 2020 | |
|---|---|---|---|
| If | 10,310.0 | 3,638.0 | 4,210.4 |
| Topdanmark | 7,712.2 | 5,471.5 | 6,022.7 |
| Hastings | 1,782.6 | 943.8 | - |
| Mandatum | 848.7 | 508.7 | 976.6 |
| Sampo plc | 186.7 | 79.2 | 117.2 |
| Sampo Group, total | 20,840.1 | 10,641.3 | 11,326.8 |
Source of GHG emissions, %
Sampo Group
| 2022 | 2021 | 2020* | |
|---|---|---|---|
| Business travel | 28.5 | 25.8 | 31.4 |
| Employee commuting and remote working | 26.5 | - | - |
| Electricity | 14.4 | 18.8 | 18.8 |
| IT and cloud services | 10.1 | 20.8 | 14.5 |
| Stationary and mobile combustion | 5.7 | 17.5 | 13.4 |
| Fuel and energy related activities | 7.1 | 10.6 | 11.4 |
| Heating and cooling | 5.1 | 4.4 | 6.7 |
| Other | 2.6 | 2.1 | 3.7 |
*Excluding Hastings
More information is available in the Group companies sustainability reports.
In October 2021, If committed to the Science-Based Targets initiative (SBTi). The SBTi drives ambitious climate action in the private sector by enabling companies to set science-based climate targets for the reduction of GHG emissions. Following the commitment, If will develop the targets, submit them for validation, and communicate them externally within 24 months. All targets must cover a minimum of five years and a maximum of 15 years from the date the target is submitted to the SBTi.
If is a financial institution, and therefore the company follows SBTi’s sector-specific guidelines for the financial sector. If’s investment portfolio represents a majority of If’s total GHG emissions, and If will set targets for aligning the investment portfolio with the Paris Climate Agreement.
If will also set targets for its claims handling as claims represent a substantial proportion of the company’s total emissions. In addition, If will develop targets for company vehicles and offices (energy and electricity use, waste, office supplies, water, and IT).
If’s target for business travel is to reduce the total number of flights by 50 per cent compared to the 2019 level.
Topdanmark’s goal is to become carbon neutral by 2030. This includes the operations of the company locations (Scope 1 and Scope 2), company driving in privately owned cars, air travel, water, and waste (Scope 3).
In June 2022, Topdanmark joined the SBTi and its Net-Zero Standard. This means that it is mandatory for Topdanmark to set science-based climate targets for the GHG emissions arising from the company’s own operations (Scope 1 and Scope 2), as well as for GHG emissions arising from the company’s investments (Scope 3). Targets will be validated and communicated in 2024.
Actions leading to carbon neutrality
Topdanmark
| Focus area | Action plan |
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Operation of the company’s buildings |
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Use of company cars (Topdanmark has leased approximately 100 cars) |
|
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Use of private cars for business travel (primarily business-related driving in privately owned cars by the company’s salespeople and claims adjusters) |
|
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Air travel (primarily external IT developers employed by Topdanmark in connection with different projects, travel to investor meetings, other business meetings and conferences, etc.) |
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Hastings has a long-term goal to be a net-zero organisation by 2050 at the latest. This goal is supported by the company’s commitment to the SBTi, which Hastings joined in September 2022. The plan is to set science-based climate targets for the GHG emissions arising from the company’s own operations (Scope 1 and Scope 2), as well as for GHG emissions arising from the company’s investments (Scope 3) during the next two years.
In terms of Mandatum’s carbon footprint, the biggest impact comes from investment operations. Mandatum also strives to reduce the GHG emissions of its own operations and seeks out more sustainable ways of working, for example through its internal green office policy.
Mandatum has measured the GHG emissions of its own operations since 2019. The data collected on emissions has been expanded ever since to gain an even more comprehensive understanding.
Examples of actions aimed at reducing the GHG emissions include improving the energy efficiency, the use of facilities, and recycling at Mandatum’s offices.
Investments
The carbon footprint and the climate impact of the Group’s direct equity and fixed income investments is measured annually. More detailed information on each year’s results is available in Sampo Group’s sustainability reports.
Sector-based screening and engagement, such as direct engagement with management and voting at annual general meetings, are viewed as ways to influence investee companies and reduce transition risk. Information on sector contribution to emissions and engagements are reported annually in Sampo Group’s sustainability report and the quarterly published factbook.
All Sampo plc’s subsidiaries are currently investigating possible climate-related targets for their investments.
Investments: metrics and targets
Carbon footprint of equity and fixed income investments
An external service provider calculates the carbon footprint of Sampo Group’s direct equity and direct fixed income investments annually. The latest calculation was conducted in the beginning of 2023 and it included If, Topdanmark, Hastings, Mandatum, and Sampo plc’s investments as at December 31, 2022.
The calculation method differs from year to year due to continuously improved data availability and the development of the service provider’s methodology. In addition, the changes in the Group structure have impacted the results. For these reasons, the results for different years are not comparable.
The financed emissions measure the carbon footprint of a portfolio taking Scope 1 & 2 as well as Scope 3 emissions into account. The relative carbon footprint is a normalized measure, defined as the total carbon emissions of the portfolio for each million euros invested. Carbon intensity is a metric that applies the ownership approach to also determine an investor’s share of revenue, subsequently dividing one by the other. By linking to revenue, the metric is intended to describe the carbon efficiency of the underlying holdings. The weighted average carbon intensity is derived directly from the TCFD recommendations, where GHG emissions are allocated based on portfolio weights rather than the ownership approach.
Carbon footprint of investments
Sampo Group
| 31 Dec 2022 | 31 Dec 2021 | 31 Dec 2020 | |
|---|---|---|---|
| Direct equity investments | |||
| Financed emissions Scope 1 and 2, tCO₂e | 92,059 | 150,791 | 172,505 |
| Financed emissions incl. Scope 3, tCO₂e | 2,061,710 | 2,339,007 | 497,076 |
| Relative carbon footprint (tCO2e/invested) | 77.92 | 61.82 | 76.27 |
| Carbon intensity, tCO₂e/ EURm revenue | 92.72 | 117.97 | 133.12 |
| Weighted average carbon intensity, tCO₂e/ EURm revenue | 98.20 | 105.74 | 134.68 |
| Direct fixed income investments | |||
| Financed emissions Scope 1 and 2, tCO₂e | 378,840 | 450,478 | 652,206 |
| Financed emissions incl. Scope 3, tCO₂e | 4,963,145 | 3,950,191 | 2,042,254 |
| Relative carbon footprint (tCO2e/invested) | 35.07 | 35.89 | 44.47 |
| Carbon intensity, tCO₂e/ EURm revenue | 140.38 | 167.48 | 193.23 |
| Weighted average carbon intensity, tCO₂e/ EURm revenue | 51.11 | 55.06 | 57.84 |
*Excluding Hastings
Climate impact of equity and fixed income investments
Sampo Group measures the climate impact of its direct equity and direct fixed income investments annually. The latest assessment was conducted by an external service provider in the beginning of 2023. The assessment included If, Topdanmark, Hastings, Mandatum, and Sampo plc’s investments as at December 31, 2022.
Climate scenario analysis
Part of the climate impact assessment was an analysis of whether Sampo Group’s direct equity and fixed income investments are aligned with the International Energy Agency’s (IEA) scenarios. The scenario alignment analysis compares current and future portfolio GHG emissions with the carbon budgets for the IEA’s Sustainable Development Scenario (SDS), Stated Policies Scenario (STEPS), and Current Policies Scenario (CPS). Performance is shown as the percentage of assigned budget used by the portfolio and benchmark.
According to the service provider’s analysis, Sampo Group’s direct equity and fixed income investments in their current state are misaligned with the SDS scenario, meaning the 1.5°C scenario, by 2050. The portfolio exceeds its SDS budget in 2040, and it is associated with a potential temperature increase of 1.9°C by 2050, whereas the benchmark (iShares MSCI World ETF) has a potential temperature increase of 2.8°C. In a similar analysis conducted in 2021, the portfolio exceeded the SDS budget in 2042, and it was associated with a potential temperature increase of 1.7°C by 2050. Regardless, the Sampo Group companies’ investments are still aligned with the trajectory to below 2.0°C.
Climate target analysis
In order to transition to a low carbon world, investee companies need to commit to alignment with international climate goals and demonstrate future progress. According to a climate targets analysis conducted as a part of the climate impact assessment, 59 per cent of Sampo Group’s direct equity and fixed income investment value as at December 31, 2022 was committed to such a goal. This includes ambitious targets set by the investee companies, as well as committed and approved Science-based Targets (SBT). There is a clear improvement of the results, compared to a similar analysis completed in 2021.
Going forward, Sampo Group is closely following the climate actions taken by their investee companies to manage climate risk.
Exposure to physical and transition risks
The climate impact assessment also measured the exposure of Sampo Group’s investments to physical risks and transition risks. The assessment concluded that Sampo Group’s direct equity and fixed income investments are not exposed to a high level of acute or chronic physical risk, as most of the investments are in geographical regions and in sectors, where physical risks are considered low. Sampo Group also has limited exposure the sectors such as utilities, which are particularly affected by the shift to a low carbon economy, which reduces the exposure to transition risks.
In October 2021, If committed to the Science-Based Targets initiative (SBTi). The SBTi drives ambitious climate action in the private sector by enabling companies to set science-based climate targets for the reduction of GHG emissions. Following the commitment, If will develop the targets, submit them for validation, and communicate them externally within 24 months. All targets must cover a minimum of five years and a maximum of 15 years from the date the target is submitted to the SBTi.
If is a financial institution, and therefore the company follows SBTi’s sector-specific guidelines for the financial sector. If’s investment portfolio represents a majority of If’s total GHG emissions, and If will set targets for aligning the investment portfolio with the Paris Climate Agreement.
Topdanmark committed to the Science-Based Targets initiative in June 2022. Topdanmark also supports the Business Ambition for 1.5°C campaign led by the SBTi in partnership with the UN Global Compact. Topdanmark follows SBTi’s sector-specific guidelines for the financial sector and will set targets aligned with the Paris Agreement for investments and own operations.
In investment operations, Hastings has committed to reducing the environmental impact of the investment portfolio and has pledged to reduce carbon intensity in the core investment portfolio by 50 per cent by 2030 and to be net-zero by 2050. Progress and the action plan to reach these targets will be monitored and reviewed by the Investment Committee.
Hastings has made a commitment to set science-based targets (SBTs) approved by the Science Based Targets initiative (SBTi) in accordance with the Paris Climate Agreement to limit global warming to 1.5°C. The commitment will see Hastings develop both short-term (5-10 years) and longer-term net-zero targets for both its own operations and investments over the next two years, with targets being disclosed to SBTi in 2024. Once the targets have been disclosed and validated, Hastings will regularly report on progress to SBTi and through annual sustainability reports.
Mandatum is part of the Portfolio Decarbonization Coalition (PDC) network, which aims to reduce the carbon footprint globally, steer assets to companies with lower emissions and develop methods for reducing the carbon footprint of investments. As part of the coalition, Mandatum strives to reduce emissions of investments over time.
Mandatum aims to be a part of the solution to the climate crisis by thoroughly analysing investment opportunities with a set of climate-focused criteria. In addition to sector-based negative screening, Mandatum focuses on finding companies that, for example, provide technological innovations to mitigate climate risk. Mandatum’s ambition is to reduce exposure to the fossil fuel industry while simultaneously investing in companies that provide energy from renewable resources or that have credible plans to transition from fossil fuels to a more sustainable business model.
As part of the evaluation of transition companies, Mandatum assesses the companies’ energy mix and proportion of renewables, plans to grow the renewable energy business, and emissions reductions targets. Mandatum’s goal is to phase out coal (i.e. companies that derive more than 5 per cent of their revenue from coal) from its investment portfolio by 2030 and oil (i.e. companies that derive more than 5 per cent of their revenue from oil) by 2040.
Sustainability focus areas of direct real estate investments
MAM focuses on energy efficiency, curbing climate change, water efficiency, recycling, and reducing the amount of waste, as well as providing sustainable, healthy, and safe properties for tenants. MAM has also set sustainability targets for the investments, and reports on progress on a regular basis.
Sustainability targets of direct real estate investments
Mandatum
| Target | Baseline year |
Target year |
Progress by 31 Dec 2022 |
| Reduce water consumption by 10 per cent | 2018 | 2022 | Water consumption reduced by 25.4 (26.3) per cent compared to the baseline. |
| Achieve carbon neutrality regarding the properties’ own energy consumption (electricity and heating/cooling) | 2019 | 2025 | Carbon footprint (Scope 1 and 2 GHG emissions): 1,638.8 (2,599.2) tCO2e. |
| Reach a recycling rate of 55 per cent | 2020 | 2025 | The recycling rate was 47 (49*) per cent and data coverage 100 (99) per cent. |
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Reduce energy consumption by 20 per cent (calculated energy efficiency) in accordance with the Energy Efficiency Agreement** |
2015 | 2025 | Energy consumption has reduced by 13 (19) per cent. Saka Hallikiinteistöt Ky was sold on 1 July 2022, which impacted the 2022 results. In 2023, due to the changes, the target was updated to a reduction of 15 per cent. |
| Keep four stars in GRESB reporting | 2020 | 2025 |
Four stars in 2022. |
* The 2021 figure was revised. One rented property was excluded from the calculations, as the tenant has its own waste management contract, which is out of Mandatum’s influence.
** The Energy Efficiency Agreement and the figures related to it included the properties of Mandatum Life Vuokratontit I Ky and Keskinäinen Vakuutusyhtiö Kaleva in 2022.
The carbon footprint of the direct real estate investments is also measured annually. In real estate investment management, energy efficiency actions have been successful and electricity consumption has decreased. The properties’ automation systems are monitored remotely, which enables the optimisation of indoor conditions and thus a reduction in energy consumption. Through continuous energy management, the available energy-saving potential is detected, and energy consumption can be monitored in real time.
Carbon footprint of direct real estate investments, tCO2e
| 2022 | 2021 | 2020 | |
| Scope 1 GHG emissions | 0.0 | 0.0 | 0.0 |
| Scope 2 GHG emissions | 1,638.8 | 2,599.2 | 3,105.6 |
| Scope 3 GHG emissions | 139.1 | 261.6 | 248.0 |
| Total (Scope 1-3) emissions | 1,777.9 | 2,860.8 | 3,353.5 |
Updated