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Responsibility in investment operations

Our approach to responsible investments

Our fundamental idea is to operate in different investment markets so as to generate the best possible return on funded pension assets in all market conditions at the selected risk level. As a long-term pension insurance company and investor, we believe that a strong approach to the responsibility for our investments, integrated into our investment process, plays an essential role in managing the risks associated with investments. We influence the investments by ourselves or in cooperation with other investors and stakeholders. Ownership steering is also a key part of the responsibility for our investment operations.

The responsibility for investments is assessed on the basis of the ESG aspects: environmental responsibility, social responsibility and good corporate governance. We believe that operating sustainably is the only way for companies to achieve sustainable results over the long term.

Responsible investment is the responsibility of future pensioners

Responsibility is an integral part of Elo’s investment operations. The objective of Elo’s investment operations is to ensure the profitable and secure investment of employment pension assets. Elo’s principles for responsible investing are based on corporate social responsibility: our accountability to policyholders and the insured. Responsibility is manifest in the selection and monitoring of investments, and it is also subject to constant development. The ESG aspects – environmental responsibility, social responsibility and corporate governance – are incorporated in all our investment operations. 

Responsible investment strategy

Elo’s principles of responsible investing and responsibility with regard to investment operations consist of the following areas:

  1. Responsible operating methods;
  2. Compliance with international norms;
  3. The assessment of responsibility as part of the analysis, decision-making and monitoring related to investments;
  4. Ownership steering and other means of influence.

Main objectives of Elo’s climate strategy

• Our long-term goal is for a significant portion of our investments to be aligned with the UN’s Sustainable Development Goals by the year 2025. This goal applies to direct equity and corporate bond investments and all infrastructure and real estate investments.
• As an ongoing goal, we strive to ensure that our investments do not involve excessive climate risk. Each year, we calculate and report the carbon footprint of our investment portfolio, and we use the results as part of the assessment of carbon risk.
• Elo joined the Energy Efficiency Agreements for the real estate sector. The savings target for 2017–2025 is a minimum of 7.5 per cent of the annual energy consumption of the properties.

Elo has undersigned the following initiatives that support responsible investing:

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UN's Principles for Responsible Investment (PRI) (2008)

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Montréal Pledge (publication of carbon footprint of investments) (2015)

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CDP (2015), climate change, water and forest programme and the Investor Action Request initiative (2018)

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IIGCC, Institutional Investors Group on Climate Change (2017)

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TCFD, Task Force of Climate Related Finacial Disclosures (2017)

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Climate Action 100+ (2017)

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Investor Agenda (2018)

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