Page 17 - Seafarers---_Pension_Fund_Annual_Report_2021

Direct real estate investments Annual Report of the Board
The majority of the carbon dioxide emissions of the properties in
use is comprised of the consumption of electricity and heat. The Seafarers’ Pension Fund 2021 Annual Report
Seafarers’ Pension Fund pursues to reduce the energy consumption
in real properties and the related carbon dioxide emissions. Energy- 1177
efficient solutions, such as geothermal heating, are emphasised in
new construction and renovation projects. The aim is to obtain
environmental certification for as many properties as possible in order
to show their responsibility and sustainability.

In order to cut down emissions due to energy consumption,
the Fund has taken into use a system facilitating the continual
monitoring of the use of building technical systems and optimisation
of consumption. In addition to enhanced efficiency, the intention is to
gradually transfer to green electricity and remote heating. The objective
is to reduce emissions by 25% by the year 2025.

Forest and infrastructure investments
In order to achieve the carbon neutrality goals set by the Seafarers’
Pension Fund, the forest and renewable energy investments play a
significant role as they are carbon sinks.

According to calculations, our forest investments bind a significant
amount of carbon dioxide. The essential components include the
change of the carbon storage in the tree stand, soil and wood products.

In our investments, we stress the preservation of the diversity and
natural values of the forests. Versatile forestry methods, including
longer rotation periods, shelterwood felling and utilisation of
undergrowth, will increase the diversity, coverage and landscape values
of forests.

The largest forest investment of the Seafarers’ Pension Fund is Forest
Holding Finland ky (FHF), which owns a total of 23,293 hectares
of forest land. In 2021, the total growth of forests amounted to
approximately 119,500 cubic metres and the fellings totalled approx.
89,700 cubic metres, so the carbon sink increased by approx. 28,000
CO2-eq tonnes during the year.

Diversity projects carried out jointly with the stakeholders
complement the biodiversity activities along with the nature
management in commercial forests and forest conservation.
For example, FHF has, during 2018–2021, protected or sold for
conservation altogether 252 hectares of forest land, mainly in the
Kainuu area. The protected areas are tree-rich, so the economic value of
the protection has been significant.

As far as infrastructure funds are concerned, the lack of portfolio-
level carbon reporting is a major issue. The Seafarers’ Pension Fund
encourages the funds to develop and improve their carbon sink
reporting.

Towards carbon neutrality in real investments
The Seafarers’ Pension Fund has set a target of reaching carbon
neutrality in real investments (real estate, forest and infrastructure) by
the year 2030. For this purpose, a stepwise action programme has been
created to achieve the target. We will influence our asset managers in
order to improve the coverage of the responsibility analysis in the future.