The pension fund Íslenski lífeyrissjóðurinn has published information on the sustainability platform of companies and funds the pension fund invests in. The pension fund also published information about GHG emissions from its domestic investment portfolio. This is the first time an Icelandic pension fund releases such detailed information about the sustainability of its investments.
New sustainability strategy
Work to analyse the non-domestic part of the pension fund’s asset portfolio is on-going, with 30% of investments in the portfolio being in funds who have achieved top scores in international ESG analyses. Around 18% of the pension fund’s non-domestic portfolio is in funds who place special emphasis on sustainable investment.
Publication of this information is based on the pension fund’s new sustainability strategy, approved in November 2021. The strategy emphasises integrating sustainability and environmental, social and governance (ESG) concerns in the analysis of investment objectives. The strategy also emphasises disclosure about the pension fund’s operation and asset portfolio, including information about sustainability and financials.
Ólafur Páll Gunnarsson, Managing Director of Íslenski lífeyrissjóðurinn: “We support climate action. The purpose of the pension fund’s new sustainability strategy is to put forth an effective and credible approach to points of contention in sustainability and responsible investment. ESG factors are key to our evaluation of investments and we consider companies who take these issues especially into account in their operation more likely to reap long-term benefits. By analysing and publishing this information, we, our members and other parties, can monitor developments. In so doing, we are better placed to provide restraint and support for companies we invest in their efforts to reduce GHG emissions.
Focus of Íslenski lífeyrissjóðurinn
The strategy of Íslenski lífeyrissjóðurinn has regard for the UN Sustainable Development Goals. The pension fund has decided to focus especially on gender equality, climate issues, responsible consumption and production, and innovation. As a result, the pension fund looks primarily to SDG no. 5 (gender equality), no. 9 (industry, innovation and infrastructure), no. 12 (responsible production and consumption) and no. 13 (climate action) in its assessment and analysis of investment objectives.
- Íslenski lífeyrissjóðurinn supports gender equality.
- Íslenski lífeyrissjóðurinn supports innovation in all industries.
- Íslenski lífeyrissjóðurinn supports the implementation of a circular economy in all consumption and production to ensure that resource utilisation does not exceed natural tolerance.
- Íslenski lífeyrissjóðurinn supports climate action. Steps to assess the carbon footprint of the asset portfolio.