Climate change mitigation has been part of Evli’s responsible investment processes for a long time. During 2023, we have updated our Climate Change Principles and set targets related to the Net Zero Asset Managers initiative.
According to our climate targets Evli aims to achieve carbon neutrality by 2050 at the latest. The target applies to emissions from both our own operations and our investments. The interim targets and the roadmap of climate targets support the long-term goal of carbon neutrality. We have also set up a Working Committee to further explore how best to achieve the investment related milestone through real-world emission reductions and in line with the Paris Climate Agreement.
Climate work 2022–2023
In 2022 we reinforced climate commitment by signing the Net Zero Asset Managers (NZAM) initiative. The signatories of the initiative include a large group of internationally renowned investors and asset managers committed to achieving carbon neutrality by 2050. The initiative guides the industry to reduce emissions and report on their progress in a consistent way, which will make it easier to monitor the overall picture.
In 2022 our Climate Targets’ Working Committee focused on mapping out the best practices and building on them to develop clear next steps. In addition, we expanded the monitoring of emissions in Evli’s investments from listed equity and corporate bond investments to other asset classes. More detailed information on the progress of Evli’s climate targets and climate work in 2022 can be found in Evli’s climate report.
During 2023, we have continued our active work to promote climate targets. In summer 2023, we updated our climate change and responsible investment principles in terms of exclusion and engagement and provided the NZAM initiative with more detailed intermediate targets.
Initial disclosure for Net Zero Asset Managers initiative
The initial disclosure for NZAM initiative includes three separate intermediate targets: a target for investments, an engagement target and a target related to the assessment of companies. The disclosure consists of Evli’s equity and corporate bond funds, and the work will continue for other asset classes in accordance with Evli's roadmap for climate targets.
The interim target for the investments is to halve the carbon footprint of our investments by 2030. According to the engagement target, we aim to engage the 20 highest emitting companies that have not committed to or do not have an approved Science-Based Target (SBTi) or that are not aligned to a net zero pathway as defined in the Net Zero Investment Framework methodology (NZIF).
The interim target related to the assessment of companies following the NZIF methodology is based on the assessment of how companies’ business model and climate policies relate to the requirements of a low-carbon society. This target provides a clear tool that emphasizes forward-looking indicators and acknowledges the different requirements for high impact sectors. The method is also in line with Evli's engagement work and brings concreteness to climate work.
More information:
Elina Niiranen, Senior Responsible Investment Analyst, Evli Plc, p. +358 40 567 3446, elina.niiranen@evli.com
