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Checkpoints towards a carbon neutral investment portfolio – Veritas devised a climate roadmap for investments

22.12.2021, News and press releases

Veritas Pension Insurance is pursuing a carbon neutral investment portfolio by the year 2035. As regards real estate investments, the objective is to attain carbon neutrality as soon as in 2030. Veritas’ new climate roadmap for investors determines actions and milestones geared towards attaining its climate targets.

”In 2020, we updated the climate targets of our investment portfolio. Now we are rendering our climate targets increasingly tangible and publishing a climate roadmap for investors to complement the climate policy of investments”, says Kari Vatanen, Chief Investment Officer at Veritas.

Veritas started off its climate roadmap by defining interim milestones for all listed equity investments and direct real estate investments, because these are the asset categories for which measurable data is currently best available. Going forward, the climate roadmap is due to expand to also encompass other asset categories

”Sustainability work entails persistent efforts, progressing one step at a time. The roadmap we have now published is the very first of its kind, and is not yet perfect. Once the comprehensiveness of data improves, we aim to expand the climate roadmap to encompass several asset categories in the future – this means that this document will be evolving over time”, says Eveliina Leino, Sustainability Manager at Veritas.

Interim milestones and actions in the Veritas climate roadmap:

Listed equity investments:

  • carbon footprint -30% by the year 2025
  • carbon footprint -50% by the year 2030
  • carbon neutrality 2035

Direct real estate investments:

  • carbon footprint -80% by the year 2025
  • carbon neutrality 2030

The principal measures for attaining these interim milestones include transitioning to low-carbon indices, impacting investment objects in an effort to reduce their carbon footprint and, where necessary, divesting carbon-intensive objects. As for real estate, emphasis is to be placed on green electric and heating energy, as well as energy efficiency projects for reducing energy consumption.

Reform and expansion of ownership policy

In addition to the climate roadmap, also Veritas’ ownership policy was updated. In conjunction with the update, the scope of the policy was extended so as to encompass not only direct equity investments, but also mutual fund investments. Ownership steering is to take account of sustainability aspects more extensively than previously.

”Our ownership policy outlines how we identify ourselves as an owner, what our expectations are and how we exercise our rights conferred by our holdings. We encourage the companies and mutual funds in which we hold an interest, for instance, to report on their environmental impacts as well as to set ambitious targets to mitigate climate change and reduce environmental hazards”, Vatanen summarises.

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