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Aktia Bank p.l.c.

PRI reporting framework 2020

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ESG issues in asset allocation

SG 13. ESG issues in strategic asset allocation

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

Describe We perform climate scenario analysis of our direct equity and corporate bond portfolios using the PACTA tool.

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

Describe

We have conduced scenario analysis with the Pacta tool, in order to assess portfolio exposures to economic activities affected by the transition to a low carbon economy, and to inform our view on expected changes to alignment with the transition for portfolio companies. 

13.5 CC. Indicate who uses this analysis.

13.6 CC. Indicate whether your organisation has evaluated the potential impact of climate-related risks, beyond the investment time horizon, on its investment strategy.

Describe

We are long term investors and the holding period for a large part of the unit-holders (share holders) in our funds is very long, tens of years. The long term approach reached beyond the typical holding period of any single investment in the portfolio. Therefore it is natural for us to aim to understand the long term trends affecting the strategies we manage. Some climate-related impacts on a portfolio has already started to materialize while others will be seen in practice within 5, 10 or 15 years time. We need to understand them now in order to make the best possible decisions today. 

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

13.8 CC. Indicate the climate scenarios your 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

other description

          We calculate and report carbon footprint and carbon intensity for our Equity portfolios and our Corporate Bond mutual fund through top down analysis.
        

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 reviewed the carbon intensity and efficiency of our equity portfolios and the Corporate Bond and European High Yield mutual funds. We have disclosed the carbon footprints for these funds publicly on our website in the fund's reports and in our RI report. We also conduct a net impact analysis of these portfolios using "The Upright Project":s model for assesing e.g. the environmental footprint, including GHG emissions. This impact report is disclosed publicly on the www.aktia.fi website.

14.5. Additional information [Optional]


SG 14 CC.

14.6 CC. Provide further details on the key metric(s) used to assess climate-related risks and opportunities.

Metric Type
Coverage
Purpose
Metric Unit
Metric Methodology
Climate-related targets
          Lower CO2 footprint than the comparable market on average over the longer term.
        
          Ton co2 per meur invested
        
          Scope 1 and 2 GHG emissions are allocated based on Equity + Total Debt
        
Weighted average carbon intensity
          The purpose is to assess the carbon intensity.
        
          Ton co2 per meur revenue
        
          Methodology in line with TCFD recommendation
        
Carbon footprint (scope 1 and 2)
          The purpose is to assess the carbon footprint.
        
          Ton co2 per meur invested
        
          Scope 1 and 2 GHG emissions areallocated based on Equity + Total Debt
        

14.7 CC. Describe in further detail the key targets.

Target type
Baseline year
Target year
Description
Attachments
          
        
          
        
          
        

          
        
          
        
          
        

          
        
          
        
          
        

          
        
          
        
          
        

          
        
          
        
          
        

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

Please describe

From an overall risk management point of view, we have assessed portfolio exposures to companies affected by the transition to a low carbon economy through scenario analysis for our equity portfolios. We also calculate and report carbon footprints and carbon intensities for our equity and corporate bond mutual funds.

14.9 CC. Indicate whether your organisation, and/or external investment manager or service providers acting on your behalf, undertake active ownership activities to encourage TCFD adoption.

Please describe

We encourage TCFD adoption in companies through the Climate Action 100+ initiative and in line with our active ownership policy.


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.

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



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