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Evli Bank Plc

PRI reporting framework 2019

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ESG issues in asset allocation

SG 13. ESG issues in strategic asset allocation

13.1. Indicate whether the organisation undertakes scenario analysis and/or modelling and provide a description of the scenario analysis (by asset class, sector, strategic asset allocation, etc.).

Describe We have tested climate change scenario model for individual portfolios, but it is not used regularly for all funds, since we thought the results would require further analysis.

13.2. Indicate if your organisation considers ESG issues in strategic asset allocation and/or allocation of assets between sectors or geographic markets.

We do the following

13.3. Additional information. [OPTIONAL]


SG 13 CC.

13.4 CC. Describe how the organisation is using scenario analysis to manage climate-related risks and opportunities, including how the analysis has been interpreted, the results and any future plans.

Describe

We have tested climate change scenario model for individual portfolios, but it is not used regularly for all funds, since we thought the results  and outcome would require further analysis.

13.5 CC. Indicate who uses this analysis.

13.6 CC. Indicate whether the organisation has evaluated the impacts of climate-related risk, beyond the investment time-horizon, on the organisations investment strategy.

Please explain the rationale

We have tested the scenario analysis for certain portfolios but using the results in investment decisions and investment strategy would require more analysis such that all factors behind the model would be known. We are still in early phase but developing our climate change related policies actively. 

13.7 CC. Indicate whether a range of climate scenarios is used.

Indicate the climate scenarios the organisation uses.
Provider
Scenario used
IEA
IEA
IEA
IEA
IEA
IRENA
Greenpeace
Institute for Sustainable Development
Bloomberg
IPCC
IPCC
IPCC
IPCC
Other
Other
Other

SG 14. Long term investment risks and opportunity

14.1. Some investment risks and opportunities arise as a result of long term trends. Indicate which of the following are considered.

14.2. Indicate which of the following activities you have undertaken to respond to climate change risk and opportunity

Specify the AUM invested in low carbon and climate resilient portfolios, funds, strategies or asset classes.

Total AUM
trillions billions millions thousands hundreds
Currency
Assets in USD
trillions billions millions thousands hundreds

Specify the framework or taxonomy used.

We have excluded from these investments all coal-mining companies and high emission companies.

14.3. Indicate which of the following tools the organisation uses to manage climate-related risks and opportunities.

14.4. If you selected disclosure on emissions risks, list any specific climate related disclosure tools or frameworks that you used.

We have used MSCI's Carbon Footprint measures, portfolio analysis tools and PRI's and 2 Degress Investing Inititative's scenario analysis tool.

14.5. Additional information [Optional]


SG 14 CC.

14.6 CC. Please provide further details on these key metric(s) used to assess climate related risks and opportunities.

Metric Type
Coverage
Purpose
Metric Unit
Metric Methodology
Weighted average carbon intensity
          To screen possible carbon risk
        
          tonCO2e/MUSD
        
          MSCI's methodology
        
Carbon footprint (scope 1 and 2)
          To screen possible carbon risk
        
          tonCO2e
        
          MSCI's methodology
        
Portfolio carbon footprint
          To screen possible carbon risk
        
          tonCO2e/MUSD
        
          MSCI's methodology
        
Total carbon emissions
          To screen possible carbon risk
        
          tonCO2e
        
          MSCI's methodology
        
Carbon intensity
          To screen possible carbon risk
        
          tonCO2e/MUSD
        
          MSCI's methodology
        
Exposure to carbon-related assets
          To screen possible carbon risk
        
          %
        
          MSCI's methodology
        

14.8 CC. Indicate whether climate-related risks are integrated into overall risk management and explain the risks management processes for identifying, assessing, and managing climate-related risks.

Please describe

At the moment we do not have climate change related risks integrated into official risk management metrics, and they are calculated by funds' investment teams and Evli's Responsible Investment team.

14.9 CC. Indicate whether the organisation undertakes active ownership activities to encourage TCFD adoption.

Please describe

We have participated to the investor letters sent to 415 companies organized by CDP to encourage them to report on their climate change related risks as TCFD recommends. We are also member in PRI led engagement on climate change transition risks at oil and gas sector, as well as signatory in Climate Action 100+. We also signed Investor Statement to Governments on Climate Change, which was official letter sent to governments on climate change related metrics and TCFD adoption.


SG 15. Allocation of assets to environmental and social themed areas

15.1. Indicate if your organisation allocates assets to, or manages, funds based on specific environmental and social themed areas.

15.2. Indicate the percentage of your total AUM invested in environmental and social themed areas.

4 %

15.3. Specify which thematic area(s) you invest in, indicate the percentage of your AUM in the particular asset class and provide a brief description.

Area

          Climate change
        

Asset class invested

4 % of AUM

Brief description and measures of investment

We have two-factor funds which have low carbon approach, i.e. high carbon and coal mining companies are excluded.

15.4. Please attach any supporting information you wish to include. [OPTIONAL]



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