Finland’s central bank has said that decarbonising its sovereign bond holdings will be central to its pledge today to make its €10.3bn investment portfolio carbon neutral by 2050.
Around €2.86bn of the Bank of Finland’s assets are currently invested in sovereign debt, with a further €1.6bn in sub-sovereigns.
The bank’s Principal Responsible Investment Specialist, Anna Hyrske, told RI that, while it is “confident” about meeting the climate targets for equities and corporate credit ahead of 2050, the deadline - longer than some other Net Zero pledges - was chosen because its overall portfolio is “so heavily skewed towards sovereigns” and only a “handful” of countries plan to meet Net Zero before 2050.
“Obviously we are not in a position to change climate targets for sovereigns - governments do that themselves,” she said, adding that instead the bank’s role is to keep the topic on the agenda by engaging with issuers.
In a press release, …