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Climate Impact Screening of
Nasdaq Helsinki
South Pole Group and oekom research AG· 15th December 2016 Page 1
Robert Rosenberg, Senior Consultant,
South Pole Group
About South Pole Group South Pole Group and oekom research AG· 15th December 2016 Page 2
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 150 employees
in 17 offices worldwide are
passionate to fight climate
change.
Financial industry reference South Pole Group and oekom research AG· 15th December 2016 Page 3
Page 4
Climate Change embraced by investors South Pole Group and oekom research AG· 15th December 2016
South Pole Group and oekom research AG· 15th December 2016 Page 5
Topic 2015 2016
Introduction Basic introduction to
the topic
Detailed analysis of The Paris Agreement,
2oC scenario, legislation, voluntary
initiatives
Carbon footprinting Nasdaq Helsinki and
OSEBX Nasdaq Helsinki and Nasdaq Stockholm
Methodology Full methodology Full methodology and calculations, found
in the Annex
Finnish market
deep-dive and case
studies
N/A
Research into Finnish investor activities
across carbon footprinting and climate risk
analysis – case studies on Varma,
Ilmarien, the Church Pension Fund,
Mandatum Life, Nordea and OP Financial
Group
Forward looking
analysis CDP Oekom and 2oC portfolio analysis
Report structure 2016
Climate Impact Analysis of the Nasdaq Helsinki South Pole Group and oekom research AG· 15th December 2016 Page 6
South Pole Group and oekom research AG· 15th December 2016 Page 7
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 Nasdaq
Stockholm (Sweden), DAX (Germany), Eurostoxx
50 and MSCI World.
Review and analyse the key sustainable finance
topics in Finland.
Task
Approach Page 8
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, alongside our
partner oekom research.
South Pole Group and oekom research AG· 15th December 2016
EUR 1m invested into the Nasdaq Helsinki and the Benchmarks.
Nasdaq Helsinki’s annual greenhouse gas exposure is the 3rd highest of
the indexes
Nasdaq
Helsinki
Nasdaq
Stockholm
MSCI
World Dax
Eurostoxx
50
Total Emissions
Scope 1&2 (tCO2e) 236 66 181 465 247
Comparison Nasdaq Helsinki versus Benchmarks South Pole Group and oekom research AG· 15th December 2016 Page 9
When including indirect emissions, the intensity more than doubles…
South Pole Group and oekom research AG· 15th December 2016 Page 10
Nasdaq Helsinki Nasdaq Stockholm
Scope 3 481 171
Scope 1 & 2 236 66
-
100
200
300
400
500
600
700
800
Scope 1, 2 & 3 emissions
Scope 1 & 2 Scope 3
…resulting in the Nasdaq Helsinki as the joint 2nd lowest emitter
South Pole Group and oekom research AG· 15th December 2016 Page 11
EUR 1m invested into the Nasdaq Helsinki and the Benchmarks.
Nasdaq
Helsinki
Nasdaq
Stockholm
MSCI
World Dax
Eurostoxx
50
Total Emissions
Scope 1 & 2 (tCO2e) 236 66 181 465 247
Total Emissions
Scope 1, 2 & 3 (tCO2e) 716 237 716 1’212 929
Materials and Utilities companies are the largest contributors
South Pole Group and oekom research AG· 15th December 2016 Page 12
20%
13%
2%
26%
3%4%
5%
14%
5%
9%
6%
47%
1%0% 0%
6%
2%1%
35%
1%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Nasdaq Helsinki: Sector allocations and emissions
Sector Allocation Sector Emissions
Attribution analysis the key differential between Nasdaq Helsinki and Nasdaq Stockholm
South Pole Group and oekom research AG· 15th December 2016 Page 13
Sector Sector Weighting
Difference
Sector Allocation Effect
in %
Stock Selection Effect
in %
Industrials - 9% 3%
Materials 7%
Consumer Staples - 1% 1% - 4%
Financials - 7% 2% 5%
Health Care - 2% 0% 0%
Energy 3% - 8% - 11%
Consumer Discretionary - 8% 4% - 5%
IT 8% - 2% 1%
Utilities 5% - 1%
Telecom 5% - 2% 1%
Cumulative Performance
Net Performance
12%
- 48%
- 43%
- 80%
- 124%
- 214%
- 257%
The fund, because of its investment strategy, has higher exposure to emission intense sector, however
the carbon intensity of stocks selected in these sectors is lower in comparison to the benchmark.
The 10 largest contributors account for 90% of emissions..
South Pole Group and oekom research AG· 15th December 2016 Page 14
Company Weight in
portfolio
tCO2e in
portfolio % of Total Source
Fortum OYJ 5.1% 82 35.0% Disclosure
SSAB AB 0.9% 38 16.3% Disclosure
UPM-KYMMENE OYJ 4.0% 27 11.5% Disclosure
STORA ENSO OYJ 2.5% 18 7.7% Disclosure
NESTE OYJ 3.9% 14 6.1% Disclosure
OUTOKUMPU OYJ 1.0% 10 4.3% Disclosure
FINNAIR OYJ 0.2% 9 4.0% Disclosure
HUHTAMAKI OYJ 1.8% 4 1.6% Disclosure
KEMIRA OYJ 0.7% 4 1.6% Disclosure
VIKING LINE ABP 0.1% 3 1.5% Approx
Four of the 10 largest contributors account for almost 60% of emissions..
South Pole Group and oekom research AG· 15th December 2016 Page 15
Company Sector (GICS) Portfolio
Weight Data Source
Emissions
(tCO2e) % of Total
NORDEA BANK AB Financials 14.29% CDP 0 0.02%
NOKIA OYJ Information
Technology 12.1% CSR 1 0.46%
SAMPO OYJ Financials 8.8% CDP 0 0.00%
KONE OYJ Industrials 8.1% CDP 1 0.23%
TELIA CO AB Telecommunication
Services 6.9% CDP 2 0.71%
FORTUM OYJ Utilities 5.1% CDP 82 34.97%
UPM-KYMMENE OYJ Materials 4.0% CDP 27 11.52%
NESTE OYJ Energy 3.9% CDP 14 6.08%
WARTSILA OYJ Industrials 3.2% CDP 0 0.19%
STORA ENSO OYJ Materials 2.5% CDP 18 7.71%
33% of companies report their greenhouse gas emissions, 34% in 2015
South Pole Group and oekom research AG· 15th December 2016 Page 16
Not reporting is typically an indicator for lack of a climate strategy.
23%
5%
67%
5%
Nasdaq Helsinki: Sources of Emissions (Per Company)
CDP CSR Approx Other
16%
5%
75%
4%
Nasdaq Stockholm: Sources of Emissions (Per Company)
CDP CSR Approx Other
23%
5%
67%
5%
Nasdaq Helsinki: Sources of Emissions (Per Company)
CDP CSR Approx Other
16%
5%
75%
4%
Nasdaq Stockholm: Sources of Emissions (Per Company)
CDP CSR Approx Other
Forward-looking vs. Snapshot South Pole Group and oekom research AG· 15th December 2016 Page 17
Including trend indicators into the analysis
South Pole Group and oekom research AG· 15th December 2016 Page 18
0
5
10
15
20
25
30
35
40
45
Average oCRR (per company) Weighted Average oCRR of Money Invested
Average oekom Carbon Risk Rating
Nasdaq Helsinki Nasdaq Stockholm
Companies with high emissions also have high oCRR
South Pole Group and oekom research AG· 15th December 2016 Page 19
FORTUM OYJ
SSAB AB-A SHARES
UPM-KYMMENE OYJ
STORA ENSO OYJ-R SHS
NESTE OYJ
OUTOKUMPU OYJ
FINNAIR OYJ
HUHTAMAKI OYJ
KEMIRA OYJ
VIKING LINE ABP
0.00
10.00
20.00
30.00
40.00
50.00
60.00
70.00
80.00
90.00
100.00
0 10 20 30 40 50 60 70
Fin
anced E
mis
sio
ns (
tCO
2e)
oekom Carbon Risk Rating
Nasdaq Helsinki - Financed Yearly Emissions (tCO2e) vs oekom Carbon Risk Rating
0.0 0.5 1.0 1.5 2.0 2.5
Position on climate change
Greenhouse gas emission inventories
Greenhouse gas emission reduction targets and action plans
Transparency on climate change risks and mitigation
Score
KP
I
Average KPI Scores
Nasdaq Stockholm Nasdaq Helsinki
oekom Carbon Risk Rating performance across KPIs
South Pole Group and oekom research AG· 15th December 2016 Page 20
What’s next? South Pole Group and oekom research AG· 15th December 2016 Page 21
Free tool for screening your own Finland portfolio
South Pole Group and oekom research AG· 15th December 2016 Page 22
www.sitra.fi/sites/default/files/u489/20151030_final_nasdaq_omx_helsinki_tool.xlsm
Outlook South Pole Group and oekom research AG· 15th December 2016 Page 23
Climate Change is decoupling from ESG:
Every investor will have to take a stand.
New transparency initiatives regarding
investments and climate change on the rise
Numerous climate-focussed investment
strategies and products will be launched
Thank you South Pole Group and oekom research AG· 15th December 2016 Page 24
Robert Rosenberg
Dr. Maximilian Horster
Franziska Sinner
