JHL (19.12.2016 - Heikki Jokinen) The Trade Union for the Public and Welfare Sectors JHL prefers to invest in companies with as small a carbon footprint as possible. But the Union is also looking for a relatively good and secure return on investment.
Over the years JHL has accumulated major assets in terms of investments. The amount now totals 170 million euro, which works out at about 800 euro per member.
It is necessary for a trade union to have some assets in case of possible industrial actions. If a Union is not able to support its striking members, this makes its position weaker at the collective bargaining negotiation table.
JHL entrusts four asset manager companies to take care of the Union’s asset management. Every year the Union Board approves an investment plan setting the goal on return and risk limits.
"The asset managers act according to guidelines coming from us", said JHL Head of Finance Jan Saarinen in September in the JHL magazine Motiivi. "All four have integrated aspects of responsibility - including carbon risk - in their investment policy."
The asset managers JHL use analyse possible investments from the point of view of responsibility. In some investments they also calculate the carbon footprint.
"At the same time we expect, of course, as good a return as possible, or at least a moderate one. Combining these goals is not always simple, but not impossible either", Saarinen says.
The goal for return on investment is now four per cent. Even though return varies a lot depending on the situation, in the longer run it should be four per cent, or more, says Saarinen.
The value of JHL assets is 190 million euro on balance. Around 170 million euro of this is financial wealth. In September 2016 some 17 per cent was invested in real estate, 37 per cent in stock funds and 46 per cent in bond funds.
The average return in 2012 - 2015 was 7 per cent. From January 2016 to September 2016 the return was 3.9 per cent.