The transition to a low-carbon economy is possible only if we consider our investee companies' dependence on ecosystem services and their harmful impacts on nature.
The new OP Asset Management's Climate and Nature Review now includes, for the first time, preliminary analysis of the nature risks and nature footprint of our investments. The analysis follows the recommendations of the Task Force for Nature Related Disclosures (TNFD) framework.
“In collaboration with MSCI Research, we have applied the LEAP process (Locate, Evaluate, Assess, Prepare), which has helped us identify nature-related issues by industry, value chain, and geography. We examined the nature-related impacts and dependencies of our investments, as well as assessed risks and opportunities,” says OP Financial Group's ESG specialist Minna Kononen.
According to the preliminary analysis, the nature footprint of our investments is 59 percent lower than a globally diversified benchmark covering companies across all sectors.
Climate policy guides our work to combat climate change
OP Asset Management’s climate policy guides our work to combat climate change and defines the climate targets for OP funds.
With updated climate targets, we have shifted our focus from emission reduction targets of our investees to a broader analysis of what climate actions mean for companies in different sectors across the entire economy.
“Our goal is to support the transition to a low-carbon economy and promote collaboration among all the economic actors. The low-carbon transition and the resulting increased direct utilization of natural resources must also be ecologically sustainable. Currently, 60 percent of OP funds' direct equity and bond investments are aligning with the net-zero pathway and thus understand the prerequisites for the low-carbon transition,” explains Kononen.
Learn more about OP Asset Management's 2024 Nature and Climate Review (in Finnish): Ilmasto- ja luontokatsaus 2024