Biodiversity, carbon neutrality, planetary boundaries and impact are part of the Pension Fund’s nature and climate work. The Pension Fund identifies the risks and opportunities related to nature and the climate in its investment activities.
In its investment activities, the Church Pension Fund considers biodiversity, carbon neutrality, respect for human rights and social impact. According to the view of the Church Pension Fund, respect for planetary boundaries and a just transition are key factors for respect for people and the planet. Planetary boundaries refer to the limits of global sustainability. If these boundaries are crossed, the Earth’s natural systems may change unpredictably and permanently, which could endanger the preconditions for life on our planet. Living within planetary boundaries is an approach that respects sustainable development.
In terms of climate and nature, the Pension Fund identifies risks and opportunities in its investment activities. These risks and opportunities are considered in the Church Pension Fund’s investment strategy, strategic allocation and exclusions of investment objects, and the Pension Fund also discusses these matters with companies, asset managers and decision-makers.
The aim of the Church Pension Fund is to consistently reduce the negative climate impacts of its investment activities over time. Since the beginning of its climate work, the Church Pension Fund has aimed to achieve a carbon-neutral investment portfolio by 2035, provided that its investment environment will support this objective. The Pension Fund reviews its Climate Strategy regularly and adjusts its climate work policies in relation to how rapid and critical climate measures are required for a sustainable future, along with developments in climate-related discussions, research data, and operating environments. The Pension Fund’s updated long-term climate target is a carbon-neutral and net-zero investment portfolio by 2035, provided that its investment environment supports this objective.
Please note that these concepts are used synonymously in the Pension Fund’s Climate Strategy. Overall, these objectives seek to offset greenhouse gas emissions with equal reductions, to ensure that there is zero impact on the climate. The aim of the Pension Fund is to reduce the maximum amount of greenhouse gas emissions from the Pension Fund’s investments. In practice, the carbon-neutrality and net-zero targets of the Pension Fund’s investment portfolio may include emission compensation for emissions that cannot be reduced, or the utilisation of carbon sinks and carbon storages in its investments. The Church Pension Fund’s Climate Roadmap describes the main aspects of climate and nature work from 2016 to 2035.
More about the Church Pension Fund’s Climate Roadmap
To support the long-term objectives, the Pension Fund has set six intermediate targets for its climate work for 2030. The reference year is 2020. The progress of the objectives is monitored annually and reported annually in the overview of responsible investment.
To achieve its carbon neutrality and net-zero objective, the Pension Fund has three main Climate Strategy tools: carbon footprint reduction, climate solution investments, as well as active ownership and engagement. The tools and their implementation and monitoring methods vary by asset class, and they are described in more detail in the Climate Strategy.
The Climate Strategy describes how the Pension Fund’s investment activities manage climate-related impacts and risks, while also considering any related opportunities. The Climate Strategy complements the Pension Fund’s Guidelines for Responsible Investing.
The report on responsible investment describes the responsibility work and development of investment activities. The report is published annually in Finnish.
The Guidelines for Responsible Investing describe how environmental, societal and governance issues are taken into account in the Church Pension Fund’s investment activities across asset classes.
