LocalTapiola Asset Management Ltd
LocalTapiola Asset Management Ltd is a member of the Finnish LocalTapiola Group, a group of mutual insurance companies owned by its customers. LocalTapiola AM joined the Net Zero Asset Managers initiative in July 2021. In spring 2022 the commitment was extended to include the entire Asset Management holding structure (LocalTapiola Asset Management Ltd, LocalTapiola Real Estate Asset Management Ltd and Seligson & Co) which was formed in January 2022. The Initial Target Disclosure was made in November 2022.
46% of total AUM
initially committed to be managed in line with net zero
USD $7.35 billion
currently committed to be managed in line with net zero
Information on interim target(s) covering the proportion of assets to be managed in line with net zero
Portfolio decarbonisation reference baseline
86,0 tCO2e/ $mn invested
Allocation to climate solutions baseline
4.5% of AUM allocated to climate solutions.
Portfolio decarbonisation reference target
-50% portfolio emissions in intensity terms.
Allocation to climate solutions target
6.8% of AUM allocated to climate solutions.
GHG scopes included:
We currently include reported scope 1 and 2 emissions for portfolio holdings. We don’t use estimates when reported data is not available. We aim to include material scope 3 emissions when data is sufficiently available.
Net Zero Investment Framework
The underlying pathway is the P2 emission pathway from the IPCC special report on global warming of 1.5°C.
Proportion of AUM committed:
Scope of current target relates to LocalTapiola AM’s listed equities, direct corporate fixed income (excluding green bond fund) and real estate investments. The initial target has been calculated with the utmost care and doesn’t include asset classes for which there isn’t yet sufficient data and/or methodology, such as government bonds and fund-of-fund structures. Also, Seligson&Co funds are excluded from the initial target as they weren’t part of LocalTapiola AM holding structure at the time of the commitment and there is currently no baseline data available. These assets will be added to the scope when data and/or methodology is available. Also most of the client accounts are out of scope initially but we’re working collaboratively with our clients to align targets.
Policy on coal and other fossil fuel investments:
Yes. LocalTapiola Asset Management has an exclusion policy on fossil fuel investment. We exclude companies in the mining, energy and utility sectors that invest in new coal, lignite or peat projects. We also exclude companies that derive more than 20% of their revenue from the production of coal, lignite or peat or that generate more than 20% of their power production from coal, lignite or peat. We review our policy annually. This policy is applicable to equity and fixed income portfolios which are included in the initial scope, except for mutual funds LocalTapiola Europe Markets and LocalTapiola USA Markets.