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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 reports and the quarterly published factbook.

All Sampo plc’s subsidiaries are currently investigating possible climate-related targets for their investments.

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 2021 and it included If, Topdanmark, Hastings, Mandatum, and Sampo plc’s investments as of December 31, 2020.

The calculation method differs from year to year due to continuously improved data availability and the development of the service providers methodology. In addition, the changes in the Group structure have impacted the results. For these reasons, the results are not comparable year after year.

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

  2020* 2019** 2018***
Direct Equity Investments      
Financed emissions Scope 1 and 2, tCO₂e 172 505 148 164 334 382
Financed emissions incl. Scope 3, tCO₂e 497 076 494 472 1 504 981
Carbon intensity, tCO₂e/ EURm revenue 133,12

109,00

110,80
Weighted average carbon intensity, tCO₂e/ EURm revenue 134,68 93,00 117,50
Direct Fixed Income Investments      
Financed emissions Scope 1 and 2, tCO₂e 652 206 663 513 1 478 900
Financed emissions incl. Scope 3, tCO₂e 2 042 254 2 019 765 5 601 043
Carbon intensity, tCO₂e/ EURm revenue 193,23 299,00 134,20
Weighted average carbon intensity, tCO₂e/ EURm revenue 57,84 76,00 52,10

* The analysis includes If, Topdanmark, Hastings, Mandatum, and Sampo plc's investments as at 31 December 2020.
** The analysis includes If, Topdanmark, Mandatum, and Sampo plc's investments as at 31 December 2019.
*** The analysis includes If, Topdanmark, Mandatum, and Sampo plc's investments as at 31 December 2018.

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 2021. The assessment included If, Topdanmark, Hastings, Mandatum, and Sampo plc’s investments as of December 31, 2020.

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). The SDS is fully aligned with the Paris Agreement’s objective of limiting the increase in the global average temperature to well below 2°C above pre-industrial levels and pursuing efforts to limit the temperature increase to 1.5°C above pre-industrial levels.

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 2037, 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.

Actions are now needed to align investments with the SDS scenario. All Sampo Group companies are committed to monitor and reduce the climate impact of their investments and are using this type of analysis as a valuable source of information going forward.

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, 27 per cent of Sampo Group’s direct equity and fixed income investment value as of December 31, 2020 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).

Going forward, Sampo Group is closely following the climate action taken by investee companies. Methods include, for example, sector-based screening, ESG integration, and active ownership measures.

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 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.

More information on the climate impact assessments is available in Sampo Group’s sustainability reports.

Direct Real Estate Investments

Mandatum Asset Management (MAM), the asset management arm of Sampo Group, is responsible for If, Mandatum, and Sampo plc’s real estate investments. Most of the Group’s real estate investments are in Mandatum’s portfolio.

Sustainable management of real estate investments is under continuous development, and progress is reported both internally and externally on a regular basis. Medium- and long-term sustainability targets have been set for water consumption, carbon neutrality, recycling, energy consumption, and reporting.

Sustainability Targets of Direct Real Estate Investments, Sampo Group*

Target Scope Baseline year Target year, by the end of year Progress by 31 Dec 2020
Reduce water consumption by 10 per cent Mandatum 2018 2022 Water consumption reduced by 23.7 per cent.
Achieve carbon neutrality regarding the properties’ own energy consumption (electricity and heating/cooling) Mandatum 2019 2025 Carbon footprint (Scope 1 and 2 GHG emissions): 3,173 tCO2e
Reach a recycling rate of 55 per cent Mandatum 2020 2025 Recycling rate was 46 per cent and data coverage 92 per cent.

Reduce energy consumption by 20 per cent (calculated energy efficiency) in accordance with the Energy Efficiency Agreement

Mandatum* 2015 2025 Energy consumption reduced by 17.6 per cent.
Initiate GRESB (Global Real Estate Sustainability Benchmark) reporting and get three stars Mandatum 2019 2025

Reporting initiated and three stars achieved in 2020 and four stars in 2021. New target to be considered.

* The Energy Efficiency Agreement and the figures related to it include the properties of Mandatum Life Vuokratontit I Ky, SaKa Hallikiinteistöt Ky, and Keskinäinen Vakuutusyhtiö Kaleva.

The carbon footprint of the direct real estate investments is also measured annually. In real estate investment management, energy efficiency actions have been successful. 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*

  2020* 2019* 2018*
GHG emissions (Scope 1-2), tCO2e 3,173 6,131 6,455
GHG emissions (Scope 3), tCO2e** 234 219 173

* If, Mandatum, and Sampo plc’s investments.
** Electricity purchased by the tenants.

Updated 3 Jan 2022