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Climate Impact Screening of Nasdaq
Helsinki
Page 1
Dr. Maximilian Horster, Partner, South Pole GroupEmma Henningsson, Investor Team, CDP
South Pole Group and CDP · 4th November 2015
About South Pole GroupSouth Pole Group and CDP · 4th November 2015
We measure and reduce environmental
and social impact for 1’000+ clients.
We enable our customers to create value
from sustainability-related activities.
Our staff of 130 employees in 17 offices
worldwide are passionate to fight climate
change.
Page 2
Financial industry referenceSouth Pole Group and CDP · 4th November 2015 Page 3
A node for environmental information
CLIMATE CHANGE
FORESTS
WATER
Investors & Purchasing
organisations
Corporations
Authority
Information
Decision criteria
Authority
SUPPLY CHAIN
Page 4South Pole Group · CDP · 4 September 2015
Signatories & assets under management, 2003-15
Forests
159Reported in 2014
Water
1,064Reported in 2014
Climate change
5,000Reported in 2014
0
10
20
30
40
50
60
70
80
90
100
0
100
200
300
400
500
600
700
800
900
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Assets
(U
S$ T
rillio
n)
Nu
mb
er
of
Sig
nato
ries
Climate Change Signatories Water SignatoriesCarbon Action Signatories Forests SignatoriesClimate Change Signatory Assets Water Signatory AssetsCarbon Action Signatory Assets Forests Signatory Assets
Page 5South Pole Group · CDP · 4 September 2015
Climate Change embraced by investorsSouth Pole Group and CDP · 4th November 2015 Page 6
Global Investor
Statement on Climate
Change of 350 investors
Portfolio Decarbonization
Coalition is formed, with
now 10 members
Montreal Pledge is
announced. Over 100
signatories (USD 3tn+)
Mandatory investments
footprinting in France
Low Carbon Investment Registry
reports USD 24bn of emission
reducing investments by 45 investors
It´s a journeySouth Pole Group and CDP · 4th November 2015 Page 7
Climate Impact Analysis of the Nasdaq HelsinkiSouth Pole Group and CDP · 4th November 2015 Page 8
Task
South Pole Group and CDP · 4th November 2015 Page 9
Screen the 124 companies of the Nasdaq Helsinki for
their climate impact
Set the results in relation to investments into the
index
Compare the outcome against the OSEBX (Norway),
DAX (Germany), Eurostoxx 50 and MSCI World
Approach
South Pole Group and CDP · 4th November 2015 Page 10
Establish the carbon footprint of 1’275 companies
Relate results to each index investor’s «ownership»
of these companies to establish an «investment
carbon footprint»
Complement this with qualitative climate strategy data
of the underlying companies
Comparison Nasdaq Helsinki versus Benchmarks
South Pole Group and CDP · 4th November 2015 Page 11
EUR 1m invested into the Nasdaq Helsinki and the
Benchmarks.
Nasdaq Helsinki’s annual greenhouse gas
exposure yields «shadow costs» of 32 basis points.
When including indirect emissions, the intensity tripples…
South Pole Group and CDP · 4th November 2015 Page 12
…while all other indexes have a higher relative indirect emission intensity
South Pole Group and CDP · 4th November 2015 Page 13
EUR 1m invested into the Nasdaq Helsinki and
the Benchmarks.
Materials and Utilities companies are the largestcontributors
South Pole Group and CDP · 4th November 2015 Page 14
The 10 largest contributors account for 85% ofemissions..
South Pole Group and CDP · 4th November 2015 Page 15
…which is not linked to the top 10 companies byportfolio weight
South Pole Group and CDP · 4th November 2015 Page 16
34 % of companies report their greenhouse gas emissions
South Pole Group and CDP · 4th November 2015 Page 17
Not reporting is typically an indicator for lack of a
climate strategy.
Forward-looking vs. SnapshotSouth Pole Group and CDP · 4th November 2015 Page 18
Including trend indicators into the analysis
South Pole Group and CDP · 4th November 2015 Page 19
75% of capital invested in very transparent companies
South Pole Group and CDP · 4th November 2015 Page 20
Indicators of best practice in carbon management
South Pole Group and CDP · 4th November 2015 Page 21
82% 80% 80% 77% 76%
15%
Disclosure to CDP Board or seniormanagement
responsibility forclimate change
Climate changeintegrated into
business strategy
Have GHG target Emissionreduction
initiatives ongoingin the reporting
year
Emissionsdecreased in 2014
due to ERAs
% I
nve
ste
d c
ap
ita
l
Selected key indicators
Nasdaq Helsinki
Increasing maturity in action for carbon management
Nasdaq Helsinki stronger on leadership
South Pole Group and CDP · 4th November 2015 Page 22
Many companies achieve high scores on climate performance
South Pole Group and CDP · 4th November 2015 Page 23
Scope 3 emissions: taking steps to measure
South Pole Group and CDP · 4th November 2015 Page 24
Strong reporting on risks and opportunities
South Pole Group and CDP · 4th November 2015 Page 25
Free tool for screening your own Finlandportfolio
South Pole Group and CDP · 4th November 2015 Page 26
www.sitra.fi/sites/default/files/u489/20151030_final_nasdaq_omx_helsinki_tool.xlsm
Strategies to act
Measure & set targets Set reduction targets for yourself & asset
managers
Communicate Report your climate impact to stakeholders
Engage Engage on Transparency and Performance
Hedge Focus on likely winners of low carbon economy
Price externalities Apply environmental cost, offset GHG emissions
Divest Avoid fossil fuel exposure entirely
Page 27South Pole Group and CDP · 4th November 2015
CLIMPAX – a game changer for retail investors
South Pole Group and CDP · 4th November 2015 Page 28
University of
Hamburg
South Pole Group and CDP · 4th November 2015 Page 29
What´s next?
Thank youSouth Pole Group and CDP · 4th November 2015 Page 30
Dr Maximilian Horster
Emma Henningsson
