The Bank of Finland has adopted new interim climate targets for its investment activities, updating its responsible investment principles to align with a pathway to carbon neutrality by 2050 at the latest. The targets cover multiple asset classes, combine quantitative and qualitative elements, and are to be met by the end of 2030, building on interim targets that guided activity through end-2025 and have been attained. For equities, the emissions-intensity reduction target for the entire portfolio is increased to 60% by end-2030 from a first-quarter 2021 baseline, up from the previous 50% target. In addition, at least 75% of equity investments must be allocated to investment products with a climate and/or environmental, social and governance (ESG) objective, replacing the prior qualitative target. For corporate bonds, a new sector-specific objective ends investments connected with thermal coal mining and coal-based power generation, expressed as 0% of revenue from each activity by end-2030; existing fossil fuel-related sector limits remain in force but are incorporated into other responsible investment restrictions. Progress against the interim targets will be monitored and reported regularly, with the next set of interim targets to be established by 2030 at the latest.
Bank of Finland 2026-01-16
Bank of Finland adopts new interim climate targets for investments including a 60% equity emissions intensity cut and coal exit by 2030
The Bank of Finland has set new interim climate targets for its investment activities, aiming for carbon neutrality by 2050, with specific goals for equities and corporate bonds to be achieved by 2030. These include a 60% emissions-intensity reduction for equities and a complete divestment from thermal coal and coal-based power generation in corporate bonds.