Page 17 - Seafarers_Pension_Fund_Annual_Report_2022

Listed investments Annual Report of the Board
The responsibility analysis includes liquid investments whose total
market value is EUR 512.2 million. Of these, foreign fund investments Seafarers’ Pension Fund 2022 Annual Report
total EUR 304.2 million and direct domestic equity investments total
EUR 92.3 million. Liquid fixed-term investments totalled EUR 54.4 1177
million.

For the listed liquid investments, the ESG ratings are at a high level.
The MSCI ESG rating is 8.2/10 (8.2) with an ESG rating of AA (AA).
In the investment activities, particular attention has been paid to the
responsibility of active funds within their reference group. The listed
equity index funds (ETF) used by the Seafarers’ Pension Fund have good
ESG ratings and two of the Fund’s index funds follow Paris-aligned
climate targets. In the portfolio, the proportion of investments in tradi-
tionally controversial industries is 2.0% (2.5%).

At the end of 2022, the weighted average of total carbon risks (MSCI
data) for the listed investments was 107.9 tonnes of CO2 equivalents**
per USD million in revenue. The corresponding figure at the end of
2021 was 103.1 tonnes. The slight increase in the carbon footprint was
due to the increase in the weight of emerging market shares and inter-
est rates in our allocation and to the fact that, during 2022, the price
development of high carbon intensity companies was more positive
than that of other companies and their weight increased in the in-
dexes. The carbon footprint of the portfolio has, however, significantly
decreased over the past three years.

We have added more impact*** investments to the portfolio and the
share of these types of investments is 7.4%. These investments focus
on energy efficiency, the treatment of serious diseases, and alternative
energy solutions.

** A carbon dioxide (CO2) equivalent is a measure used to describe the
climate impact of greenhouse gases. Carbon dioxide equivalents are
expressed as masses (for example, tonnes per year) so that the global
warming potential (GWP) of other greenhouse gases is converted to
correspond to that of carbon dioxide.

*** Impact tells how large a portion of the turnover of the companies owned
through the funds is derived from products or services that help solve
significant social or environmental challenges based on the UN Sustain-
able Development Goals (SDGs). The figure is calculated as a weighted
average of the corresponding figures for the funds in the portfolio. In
order for a company to contribute to the figure of the relevant fund, it
must meet the minimum ESG standards. Thus, those companies are
excluded that have serious ESG deficiencies, an ESG rating of CCC or B,
direct involvement in usury or controversial weapons, more than 5% of
turnover from conventional weapons, or more than 10% from alcohol or
tobacco production.

Direct real estate investments
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 pursues to reduce the energy consumption
in real properties and the related carbon dioxide emissions. Energy-
efficient solutions, such as geothermal heating, are emphasised in