Helsinki, Finland-based pension insurance company Ilmarinen announced investments of over €2.7 billion (USD$3 billion) as an anchor investor in two new climate-focused ETFs launched by BlackRock’s iShares.
The new iShares ETFs include U.S. and Japan-focused funds that track MSCI Climate Action indexes. MSCI launched its Climate Action Index suite last year, aimed at enabling investors to invest in companies making progress towards emissions reduction targets. The indexes consist of companies taking measurable steps to reduce emissions, and provides exposure to all economic sectors, by selecting the top 50% of companies in each GICS sector based on factors including Scope 1, 2 and 3 emissions intensity, approved science-based targets, management of climate risks, and green business revenue.
Juha Venäläinen, Senior Portfolio Manager at Ilmarinen, said:
“We believe that companies that reduce the climate impact of their operations or try to benefit more fully than their competitors from the opportunities resulting from the fight against climate change are better investments for long-term investors compared to their peer group.”
Ilmarinen’s anchor investments include €2 billion to the USA ETF, and €745 million to the Japan ETF. The company said that the investments are a continuation of its climate-oriented investment policy.
Karoliina Lindroos, Head of Responsible Investment and Sustainability at Ilmarinen, said:
“Ilmarinen’s goal is to achieve a carbon-neutral investment portfolio by the end of 2035. Climate change risks and opportunities can also be accounted for in index investments. These investments are part of our actions to promote our climate goals.”
Rachel Aguirre, Head of US iShares Product at BlackRock, added:
“BlackRock’s product lineup is designed to offer clients investment choices and is built with an understanding of their objectives and evolving investment needs.”