The document outlines the agenda for a Climate Leadership Council event, including opening remarks by Jouni Keronen on a climate impact assessment report of companies listed on the Nasdaq Helsinki stock exchange. The report will be presented by Maximilian Horster and include a forward-looking climate analysis by Emma Henningsson, with commentary from Kari Kankaanpää of Fortum. Closing remarks will be given by Jouni Keronen.

1. Climate Impact Assessment of
companies listed on Nasdaq
Helsinki
Jouni Keronen, CLC
Janne Peljo, Sitra
4.11.2015

2. Climate Leadership Council
Members 2.9.2015 and Board for 9/2015-9/2016
J Keronen, Climate Leadership Council
Henrik Ehrnrooth, Caverion
Taavi Heikkilä, S Group
Antti Herlin, KONE
Pertti Korhonen, Chairman of the Board, Outotec
Mikko Kosonen, Vice-Chairman of the Board, Sitra
Pekka Lundmark, Fortum
Timo Ritakallio, Ilmarinen

3. Climate Leadership Council: Focus areas in 2015
Key project:
• Development of the capital area into a global cleantech reference area
Theme areas to be launched during spring 2015
• Carbon price: Development of global carbon pricing mechanisms
• Investors: Development climate and carbon and climate risk methods
• Carbon footprint: Reducing organizations’ carbon foot print
• Transport: Developing low-carbon strategies and solutions
• Construction and living: Developing low-carbon strategies and solutions
• Renewable energy system: Developing renewable energy, energy storage
and demand-side management solutions
Other theme areas could be established based on member proposals.
J Keronen, Climate Leadership Council

4. 4
Climate Risks – what’s this all about?
Photo copyright: Banking on Coal 2014, BankTrack 2014
• How does increasing pressure for climate action affect investment portfolios?
• Carbon Tracker: All currently known fossil fuel reserves cannot be burned if we
are to limit global warming to 2 degrees
• The share prices of oil, gas and coal companies depend in part on their
reserves, but what if some of those reserves can never be dug up and burned?
IPCC:
“65% of our carbon budget
compatible with a 2°C goal is already
used”
IEA:
“No more than one-third of proven
reserves of fossil fuels can be
consumed prior to 2050 if the world is
to achieve the 2 °C goal, unless
carbon capture and storage (CCS)
technology is widely deployed.”
Christine Tørklep Meisingset,
Storebrand:
”If global ambitions to limit global
warming to less than 2 degrees
Celsius become a reality, many fossil
fuel resources will become unburnable
and their financial value will be
dramatically reduced.”

5. 5
Investors are becoming more active on climate issues

6. 6
Institutional investors globally are reducing their
holdings in CO2-intensive companies

7. 7
How should investors approach this phenomenon?
Carbon-risk has to become a part of systematic risk management
• Portfolio carbon-intensity assessment
• Stress testing against increasing CO2-price
• Identifying hidden carbon-exposure
Assessing current portfolio
Assessing current portfolio
• Examining alternative investment
targets
• Assess their fit to portfolio
• Balance the risk-return profile based
on holistic risk-assessment
Assessing alternative
investment targets
Reducing carbon-risk
• CAPEX-investments in carbon-intensive
companies, sensitivity analysis in different CO2-
price scenarios
• Monitor divestment campaign impacts: are
other owners prone to divest?
Active monitoring of investments
Monitor carbon-risk development
Being passive is also a strategic choice: It is the fiduciary duty of asset managers to
assess these risks as a part ofthe overall portfolio risk assessment

8. • Opening words by Jouni Keronen (CEO, Climate Leadership Council)
• Report release: Assessment of carbon emissions of the companies
on Nasdaq Helsinki by Maximilian Horster (Director Financial Industry,
South Pole)
• Forward-looking analysis on climate impact of Finnish listed
companies by Emma Henningsson (Director, CDP Nordic)
• Fortum Commentary, Kari Kankaanpää (Senior Manager, Climate
Affairs)
• Closing remarks by Jouni Keronen
8
Agenda

9. Climate Leadership Council
J Keronen, Climate Leadership Council
“Creating transparency to the carbon footprint of
companies listed on Nasdaq Helsinki is serving
the increasing needs of responsible investors to
know the carbon footprint of their investments.
The momentum against climate change is
accelerating and investors are becoming an
important force in decarbonizing the economy.”
Pertti Korhonen, CLC, Chairman