The Finnish Cultural Foundation as a responsible investor

The Finnish Cultural Foundation is a responsible investor. That means that it takes into account social responsibility factors in its investment decisions and encourages responsible practices in all of the targets in which it invests.

For investment operations to comply with international norms, their social responsibility must be measurable on a regular basis. In 2019, the Cultural Foundation started acquiring sustainability reporting services from an independent provider.

The Foundation’s sustainability reports analyse its invested capital from the perspectives of environmental responsibility, social justice and corporate governance (ESG indicators). The analysis takes into account both direct investments and capital placed in investment funds. This provides an up-to-date view of the various facets of responsibility of the portfolio as a whole, as well as of individual investments. Fighting climate change is one aspect of environmental responsibility. The Cultural Foundation does its part to ensure that corporations, funds and portfolio managers pay even closer attention to climate issues in their operations and their reporting.

The Cultural Foundation’s reporting service is supplied by an independent outside provider. Sustainability evaluations are done against international standards, by applying universally approved data and analyses generated by a global operator. The Cultural Foundation is one of the institutional investors pioneering the standardisation of these in Finland.

An extensive part of the Foundation’s investment capital is suitable for ESG analysis, which means that its sustainability reporting is comprehensive. Even though the market’s ESG indicators are still in many places imprecise and subject to continuous development, they make it clear that the sustainability of the Cultural Foundation’s investment portfolio is doing well compared to the overall market.

Thanks to the newly adopted reporting, the Finnish Cultural Foundation has access to up-to-date information on its investment responsibility. This permits the Foundation to track and systematically improve this matter over time.