KLP’s sustainability accountsQ4 2022
KLP’s purpose is to provide secure and competitive pension savings in a way that contributes to the realisation of the United Nations Sustainable Development Goals (SDGs) and the Paris Agreement’s climate goals. Our ambition is to be among the leaders in our sector for corporate responsibility.
In this sustainability report, we give an account of how KLP engages in the field of corporate responsibility and sustainability and the results we have achieved so far this year. Our sustainability reporting rests on KLP’s core values:
- Open: KLP is as open and transparent as possible, because we think this makes our endeavours more influential and effective. We are therefore open about both our positive and negative impacts.
- Clear: KLP reports clearly and in ways that are understandable for our stakeholders. We define clearly and explain what we mean by the terms we use.
- Responsible: KLP will report responsibly and present our results accurately, focusing on the areas that are material for KLP.
- Committed: KLP considers openness an important contributor to and a precondition for further development in the financial sector. We therefore seek to report in a way that is comparable with other entities, and we base our reporting on best practice and existing standards.
Engaged and responsible owner
KLP aims to be an engaged and responsible owner. This is stated in KLP’s corporate strategy and corporate responsibility strategy, as well as its asset management strategy and associated investment principles. Our strategies and guidelines are based on international norms and conventions intended to promote human rights and decent working conditions, reduce harm to the climate and the environment, and contribute to sustainable development.
As a responsible investor and owner, we utilise the following tools in our work:
- We integrate sustainability factors in our investment analyses and decision-making processes.
- We try to influence companies, business sectors and markets to engage in sustainable value creation through the exercise of active ownership.
- We exclude companies that violate our criteria and that show neither a willingness nor an ability to change.
Goals
- KLP aimes to vote at 95 per cent of general meetings in Norway and abroad throughout the year.
- KLP aimes to follow up 240 companies in 2022.
| 31.12.2022 | 31.12.2021 | 31.12.2020 | 31.12.2019 | UN SDGs | |
|---|---|---|---|---|---|
| Individual companies KLP has engaged in direct dialogue with on ESG issues | 255 | 294 | 362 | 191 | All SDGs |
| General meetings of Norwegian companies at which KLP has voted (number/percentage) | 115 (95 %) | 98 (85 %) | 112 (97 %) | 102 (97 %) | n/a |
| General meetings of foreign companies at which KLP has voted (number/percentage) | 8 787 (99 %) | 8 779 (98 %) | 8 052 (96 %) | 7 512 (97 %) | n/a |
| Companies excluded from investment | 758 | 657 | 560 | 534 | All SDGs |
Comments on performance in the fourth quarter
In the fourth quarter, KLP was in dialogue with 75 companies on topics related to ESG, including labor rights for migrant workers in Qatar. Throughout the year, KLP had dialogue with a total of 255 companies and achieved the goal of following up with 240 companies.
By the end of the year, KLP had voted at 99 per cent of the general meetings of foreign companies, and at 95 per cent of the general meetings of Norwegian companies. Voting is an important tool for KLP as a responsible investor, and we are pleased to have achieved the goal of voting at 95 per cent of general meetings.
In the fourth quarter, KLP excluded 26 companies for breaching KLP's exclusion criteria related to gambling, alcohol, weapons, coal, environmental destruction, corruption, human rights, and rights in war and conflict. At the end of the quarter, a total of 758 companies were excluded.
Climate, environment and nature
In the longer term, climate change and the impoverishment of nature and the environment will affect KLP’s opportunities to create a good return on the pension assets we manage. We have worked systematically on climate risk over several years to enable us to analyse, manage and report climate risk as a financial risk. At the same time, we have a responsibility to minimise the impact we have on the climate, the environment and nature – directly through our own activities and indirectly through our customers, partners, suppliers and investments.
Climate goals and climate-friendly investments
If the world is to keep global warming below 1.5C, global emissions must reach net zero by 2050. Thus, KLP has a goal of aligning our investments to this target and reach net zero in our portfolio as well. We have developed our own roadmap, which describes how KLP will assess each individual investment against an emission pathway compatible with the 1.5C target, and how we will work towards and measure our contribution to the goals set out in the Paris Agreement. Read more about the roadmap here.
Huge investments are needed if the world is to reach the Paris Agreement’s climate targets and succeed in transitioning to a low-emission society. One important aspect of KLP’s climate goals is to increase our climate-friendly investments. Climate-friendly investments are those which contribute directly to emission reductions or otherwise contribute to the green transition in Norway or around the world. We distinguish between two different categories of climate-friendly investments:
- Zero-emission investments – These are investments involving zero or almost zero emissions from operations (not including Scope 3 emissions). The category includes renewable energy, sustainable forestry, and zero-emission transport. These are the same zero-emission investments that are 100 per cent Paris aligned in KLP’s climate goals.
- Transitional investments – These are investments that contribute to a reduction in emissions and the development of new technologies, or that help sectors that would find it hard to reach zero emissions to reduce their emissions and become more sustainable. This is achieved through green lending and bonds, green buildings, and infrastructure.
Goals
To increase KLP’s climate-friendly investments by NOK 6 billion per year
| MILLION NOK | New in 4th quarter 2022 | 31.12.2022 | 31.12.2021 | 31.12.2020 | UN SDGs |
|---|---|---|---|---|---|
| Zero-emission investments | -1 314 | 37 579 | 32 340 | 32 687 | - |
| Renewable energy | -1 314 | 35 498 | 29 800 | 32 687 | 7. 9. 17. |
| As a share of KLP's total investments | - | 5,0 % | 4,2 % | 5,0 % | 7. |
| Renewable energy in Norway | -2 278 | 21 449 | 20 051 | 23 074 | 7. |
| Renewable energy internationally | 1 165 | 12 515 | 8 581 | 6 698 | 7. |
| Renewable energy in developing countries | -201 | 1 534 | 1 168 | 932 | 7. 9. 17. |
| Sustainable forestry | - | 2 081 | 1 880 | - | 13. 15. |
| Transitional financing | 2 120 | 24 069 | 19 612 | 23 569 | - |
| Green buildings in the property portfolio | - | 10 670 | 10 367 | 13 273 | 9. |
| As a share of the portfolio's market value | - | 11,5 % | 12,0 % | 16,0 % | - |
| Green lending | -1 | 2 753 | 2 541 | 2 087 | 6. 9. 11. 13. |
| Green bonds | 1 826 | 9 095 | 5 813 | 1 881 | - |
| Infrastructure | 295 | 1 551 | 891 | 6 328 | 9. |
| Total climate-friendly investments | 806 | 61 648 | 51 952 | 56 257 | - |
| As a share of KLP's total investments | - | 8,7 % | 7,4 % | 8,1 % | - |
| Fossil energy | - | 15 843 | 12 441 | 7 818 | - |
| As a share of KLP's total investments | - | 2,2 % | 1,8 % | 1,2 % | - |
Comments on performance in the fourth quarter
KLP's climate-friendly investments increased by 806 NOK million in new investments in the fourth quarter. Throughout the year they increased by over 8.6 billion NOK in total. Climate-friendly investments are a focus area for KLP and a way for KLP to contribute to the green transition. Therefore, KLP has a goal of investing new 6 billion each year, which was achieved by a good margin. The market value of these investments has increased to over 61 billion NOK and constitutes 8.7 per cent of KLP's investments.
The value of KLP's investments in fossil energy has increased since the previous quarter. This is largely due to the fact that the market value of these investments has increased, and not new investments. As a share of KLP's investments, there is no change.
KLP’s property portfolio and own operations
KLP has a responsibility to reduce the impact we have on climate, nature, and the environment. Therefore, we work to reduce the footprint from our own operations and offices. As one of the largest real estate companies in the Nordic region, KLP also aims to help create meeting places where people thrive and can realize their potential. We are concerned with reducing the environmental footprint of the real estate industry and have a long-term perspective on our properties. This is why we are working to improve in order to reduce energy consumption and handle waste in a better way.
Goals
- To halve greenhouse gas emissions from our own operations by 2030, compared to emissions in 2010
- To reduce the property portfolio’s energy consumption to 169 kWh per square meter.
| 31.12.2022 | 31.12.2021 | 31.12.2020 | UN SDGs | |
|---|---|---|---|---|
| Number of flights | 3 505 | 864 | 1 302 | 12.13. |
| Greenhouse gas emissions from flights (tonnes CO2e) | 245 | 52 | 150 | 12.13. |
| Energy consumption at KLP's own offices (kWh per m2) | 125 | 97 | 97 | 9. 13. |
| Energy consumption in KLP's property portfolio (kWh per m2) | 155 | 161 | 167 | 9. |
Comments on performance in the fourth quarter
After several years of pandemic, society has finally returned to a normal situation, which is also shown by the figures for flights and energy consumption. KLP sticks to reducing unnecessary flights, but the removal of restrictions on business travel has led to a large increase in the number of flights compared to the last two years. At the same time, it seems that the pandemic has changed our travel habits, and compared to the fourth quarter of 2019, the number of flights is 46 percent lower. KLP has introduced hybrid offices, and although some employees work from home, there is a large increase in employees in the offices. This also results in increased energy consumption in the office premises.
Similarly, the energy consumption in KLP's property portfolio may also be affected by the reopening and that there is increased activity in the premises. This has led to increased energy consumption. The ongoing energy crisis and high electricity prices have a direct impact through increased operating costs, and KLP Eiendom has contacted all tenants about possible measures to reduce energy consumption. The response from the tenants has been positive, and adjustments have already been made to several properties in consultation with the tenants. Before major measures are implemented, the KLP house will be used as a test project to test the implementation and effect of various measures, and how it affects the working environment.
Innovation and social development
While pension assets are invested to generate a good return, they also contribute to innovation and social development. KLP has several portfolios that are targeted at helping to make a difference in the transition to a sustainable society and building the society of the future.
Lending to municipalities and county municipalities
KLP’s lending activities are directed primarily at Norwegian municipalities, and county municipalities, as well as other public sector entities. The loans are used for purposes that support local social development and welfare. For many years, we have contributed to the sustainable development of society through the provision of loans to fund projects all over Norway.
Goals
To increase lending to purposes of this type.
| MILLION NOK | New in 4th quarter 2022 | 31.12.2022 | 31.12.2021 | 31.12.2020 | UN SDGs |
|---|---|---|---|---|---|
| Lending in total | 707 | 87 027 | 84 016 | 81 442 | |
| Lending for roads and transport | 9 067 | 9 700 | 8 887 | 9. | |
| Lending for publicly owned real property | 4 407 | 4 129 | 4 862 | 9. | |
| Lending to the public sector and associated entities | 70 734 | 66 470 | 64 581 | 9. | |
| Lending for water and sewage services, and waste management | 2 818 | 3 717 | 3 112 | 9. | |
| Green lending | -1,4 | 2 753 | 2 575 | 277 | 9. |
Comments on performance in the fourth quarter
KLP's lending to municipalities and county municipalities increased by a net 707 million NOK in the fourth quarter. New green loans were issued for close to 25 million NOK, but green lending was reduced by a net 1.4 billion NOK. The new green loans went, among other things, to investment in water and sewerage in Hol municipality and implementation of energy efficiency measures in Saltdal municipality.
Seed capital investments
KLP wishes to contribute to ensuring that good ideas can be pursued locally and that new jobs are created in Norway. By investing in innovation, KLP will contribute to local value creation and the green transition in Norway. We have established a separate portfolio where we invest in seed funds. Most of these are linked to Norwegian research environments.
Goals
To invest NOK 500–1,000 million in seed-capital, thereby contributing to innovation and new business.
| MILLION NOK | New in 4th quarter 2022 | 31.12.2022 | 31.12.2021 | 31.12.2020 | UN SDGs |
|---|---|---|---|---|---|
| Seed capital investments in Norway | 47 | 492 | 310 | 125 | 8. |
Comments on performance in the fourth quarter
In the fourth quarter, KLP's seed investments increased by NOK 47 million. These are increased investments in several of the 13 funds we have already invested in, but KLP has also committed us to investments in two new seed funds.
Banking and finance in developing companies
Underdeveloped financial institutions and the population’s lack of access to financial services, such as savings accounts, loans, and insurance coverage, are obstacles to poverty reduction in developing countries. Around 1.7 billion people worldwide still have no access to these fundamental financial services. Through our investments in the financial sector in developing countries, we wish to contribute to economic growth and higher living standards.
Goals
To increase investments in the banking and financial sector in developing countries, thereby contributing to economic growth and higher living standards in those countries.
| MILLION NOK | New in 4th quarter 2022 | 31.12.2022 | 31.12.2021 | 31.12.2020 | UN SDGs |
|---|---|---|---|---|---|
| Banking and finance in developing countries | -2 | 1 000 | 886 | 665 | 1. 5. 8. 9. 11. 17 |
Comments on performance in the fourth quarter
The decrease in KLP's investments in banking and finance in developing countries in the fourth quarter is due to a repayment from one of the NMI funds in which KLP is invested.
KLP as a workplace and employer
KLP strives to be an attractive workplace, with a working environment characterised by equality and diversity, and where everyone feels respected for who they are. KLP works actively and systematically to promote equality and prevent discrimination. KLP engages in systematic HSE activities to ensure a safe and proper working environment, establish good procedures, and achieve better health and wellbeing, reduced sickness absence and the wholehearted commitment of employees.
Goals
To achieve a sickness absence rate of less than 4 per cent.
| 31.12.2022 | 31.12.2021 | 31.12.2020 | UN SDGs | |
|---|---|---|---|---|
| Employees at KLP | 1 093 | 1 048 | 1 018 | 1 007 |
| Total sickness absence | 4,5 % | 3,3 % | 3,2 % | 3,9 % |
Comments on performance in the fourth quarter
At the end of 2022, total sickness absence for the whole year was 4.5 per cent, while in the fourth quarter it was 5.3 per cent. This is an increase from the previous quarter and higher than the fourth quarter of the previous two years. During the pandemic, infection control restrictions led to a reduced incidence of other diseases and resulted in low sickness absence. The increase in sickness absence in the 4th quarter may be related to the increased corona infection before Christmas, and a high incidence of other diseases such as seasonal flu and communicable diseases.
Equality and diversity
KLP works actively and systematically to promote equality and prevent discrimination. In 2021, KLP became a partner in the "Women in Finance Charter", an initiative that will contribute to greater gender balance in the financial industry, and has committed to four principles that will support this:
- Set internal targets for gender balance at management levels and in specialist functions
- Annually publish the status and progress towards the goals in the sustainability report
- Have one member in the group management with dedicated responsibility for following up the work on gender balance and inclusion
- Have an ambition that progress towards the goals should be reflected in remuneration to managers who particularly contribute to achieving the goals
Goal setting
- To increase the number of women in management positions and senior professional positions
| 31.12.2022 | 31.12.2021 | 31.12.2020 | UN SDGs | |
|---|---|---|---|---|
| Gender balance in management positions and senior professional positions (women / men) | 33 / 67 % | 30 / 70 % | - | n/a |
| New employments in management positions and senior professional positions (women / men) | 60 / 40 % | - | - | 3. |
Comments on performance in the fourth quarter
In 2022, there were 20 people (12 women and 8 men) who started in management positions or senior professional positions with salaries above 1 million. These were recruited for two new positions (two women) and 18 replacements for employees who left (8 women and 10 men).
UN Sustainable Development Goals which KLP contributes to
Goal 1, No poverty
- Target 1.4: By 2030, ensure that all men and women, in particular the poor and the vulnerable, have equal rights to economic resources, as well as access to basic services, ownership and control over land and other forms of property, inheritance, natural resources, appropriate new technology and financial services, including microfinance
Goal 3, Good health and well-being
- Target 3.a: Strengthen the implementation of the World Health Organization Framework Convention on Tobacco Control in all countries, as appropriate
Goal 5, Gender equality
- Target 5.1: End all forms of discrimination against all women and girls everywhere
- Target 5.4: Recognize and value unpaid care and domestic work through the provision of public services, infrastructure and social protection policies and the promotion of shared responsibility within the household and the family as nationally appropriate
- Target 5.5: Ensure women’s full and effective participation and equal opportunities for leadership at all levels of decision-making in political, economic and public life
- Target 5.a: Undertake reforms to give women equal rights to economic resources, as well as access to ownership and control over land and other forms of property, financial services, inheritance and natural resources, in accordance with national laws
Goal 6, Clean water and sanitation for all
- Target 6.4: By 2030, substantially increase water-use efficiency across all sectors and ensure sustainable withdrawals and supply of freshwater to address water scarcity and substantially reduce the number of people suffering from water scarcity
Goal 7, Affordable and clean energy
- Target 7.1: By 2030, ensure universal access to affordable, reliable and modern energy services
- Target 7.2: By 2030, increase substantially the share of renewable energy in the global energy mix
- Target 7.a: By 2030, enhance international cooperation to facilitate access to clean energy research and technology, including renewable energy, energy efficiency and advanced and cleaner fossil-fuel technology, and promote investment in energy infrastructure and clean energy technology
Goal 8, Decent work and economic growth
- Target 8.3: Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity and innovation, and encourage the formalization and growth of micro-, small- and medium-sized enterprises, including through access to financial service
- Target 8.4: Improve progressively, through 2030, global resource efficiency in consumption and production and endeavour to decouple economic growth from environmental degradation, in accordance with the 10-year framework of programmes on sustainable consumption and production, with developed countries taking the lead
- Target 8.5: By 2030, achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value
- Target 8.7: Take immediate and effective measures to eradicate forced labour, end modern slavery and human trafficking and secure the prohibition and elimination of the worst forms of child labour, including recruitment and use of child soldiers, and by 2025 end child labour in all its forms
- Target 8.8: Protect labour rights and promote safe and secure working environments for all workers, including migrant workers, in particular women migrants, and those in precarious employment
- Target 8.10: Strengthen the capacity of domestic financial institutions to encourage and expand access to banking, insurance and financial services for all
Goal 9, Industry, innovation and infrastructure
- Target 9.1: Develop quality, reliable, sustainable and resilient infrastructure, including regional and transborder infrastructure, to support economic development and human well-being, with a focus on affordable and equitable access for all
- Target 9.3: Increase the access of small-scale industrial and other enterprises, in particular in developing countries, to financial services, including affordable credit, and their integration into value chains and markets
- Target 9.4: By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes, with all countries taking action in accordance with their respective capabilities
- Target 9.a: Facilitate sustainable and resilient infrastructure development in developing countries through enhanced financial, technological and technical support to African countries, least developed countries, landlocked developing countries and small island developing States
Goal 10, Reduced inequalities
- Target 10.2: By 2030, empower and promote the social, economic and political inclusion of all, irrespective of age, sex, disability, race, ethnicity, origin, religion or economic or other status
- Target 10.4: Adopt policies, especially fiscal, wage and social protection policies, and progressively achieve greater equality
Goal 11, Sustainable cities and communities
- Target 11.1: By 2030, ensure access for all to adequate, safe and affordable housing and basic services and upgrade slums
- Target 11.5: By 2030, significantly reduce the number of deaths and the number of people affected and substantially decrease the direct economic losses relative to global gross domestic product caused by disasters, including water-related disasters, with a focus on protecting the poor and people in vulnerable situations
- Target 11.6: By 2030, reduce the adverse per capita environmental impact of cities, including by paying special attention to air quality and municipal and other waste management
Goal 12, Responsible consumption and production
- Target 12.5: By 2030, substantially reduce waste generation through prevention, reduction, recycling and reuse
- Target 12.6: Encourage companies, especially large and transnational companies, to adopt sustainable practices and to integrate sustainability information into their reporting cycle
Goal 13: Climate action
Goal 15, Life on land
- Target 15.2: By 2020, promote the implementation of sustainable management of all types of forests, halt deforestation, restore degraded forests and substantially increase afforestation and reforestation globally
Goal 17, Partnership for the goals
- Target 17.3: Mobilize additional financial resources for developing countries from multiple sources
Notes and definitions
Engaged and responsible owner
Number of unique companies shows the number of unique companies with which KLP has communicated directly during the year on ESG-related matters and as part of various investor alliances. KLP may engage in several dialogues with a company on a variety of topics during the year. KLP’s follow-up varies in scope, topic and time horizon. This is a form of active ownership, in which KLP engages in a dialogue with companies to clarify how they deal with corporate responsibility challenges and to communicate KLP’s expectations as an investor.
General meetings of shareholders. KLP makes use of ISS’s services to vote at general meetings in the companies in which we invest. At general meetings of Norwegian companies (domiciled or listed in Norway), KLP votes manually though ISS. At general meetings of non-Norwegian companies, KLP votes by proxy through ISS.
Number of exclusions shows the total number of companies excluded from investment by KLP at the close of the year, due to violation of the exclusion criteria set out in the Guidelines for KLP as a Responsible Investor.
Climate, environment and nature
Climate-friendly investments
It is the market value of the investments, in NOK million, that is disclosed. New investments are net new investments through the year.
The percentage is calculated as the investments’ percentage of KLP’s collective portfolio.
To maintain consistency with respect to the definitions KLP uses in our climate goals, we have revised the definition of climate-friendly investments. KLP divides climate-friendly investments into zero-emission investments and transitional investments. Where practical and appropriate, historic figures have been restated in respect of the new definition. However, the figures are, in principle, not comparable with previously reported figures.
Zero-emission investments
Zero-emission investments are investments whose operations produce zero or almost zero emissions.
Renewable energy in Norway are investments in shares and bonds in Norwegian electricity generating companies and power grid operators. The electricity generating companies are classified as those operating hydro, wind or biofuel power plants. The figures also include loans to companies and projects in Norway within the power sector. This has not previously been the case. The figure is therefore not directly comparable with previous years.
Renewable energy abroad are investments in renewable energy projects outside of Norway. This includes both equity investments and project financing. The investments are made either through external fund managers specialising in energy or through other partners. This year, the figure also includes companies that derive more than 95 per cent of their revenues from the production of renewable energy.
Renewable energy in developing countries are investments in new renewable energy projects. The investments are made partly as direct investments in partnership with Norfund, partly as fund investments through the fund manager Climate Investor One. The investments are part of KLP’s impact investments, which is one of the tools in the Guidelines for KLP as a Responsible Investor. The objective is to obtain a financial return and benefit society. The investments are based on commercial risk and return assessments, but also attach importance to their impact on social and environmental parameters.
Sustainable forestry are investments in funds that invest in FSC-certified forest land in Sweden, Finland and the Baltic states.
Zero-emission ferries are loans to Fjord1 for electric ferries. These loans were repaid in the second quarter of 2022 and are therefore removed from the table from the third quarter onwards. This means that the value of climate-friendly investments per third quarter in 2021 and 2020 is lower and deviates from the value that has been reported historically, as the value of zero-emission ferries is not included in the total.
Transitional investments
These are investments that contribute to a reduction in emissions and the development of new technologies, or that help sectors that would find it hard to reach zero emissions to reduce their emissions and become more sustainable.
Green buildings. It is the market value of green buildings in KLP’s property portfolio and the total square metreage that are reported. Green buildings are defined as buildings rated as Energy Class A. This is in accordance with the proposed requirements in the EU Taxonomy. Previously, the definition has also included buildings that are BREEAM-certified to a minimum rating of ‘very good’, that produce their own energy through solar panels, or that have won a Norwegian building award in which the environment was an important performance indicator. The updated definition is therefore stricter and includes fewer buildings. The figures from previous years have not been restated in accordance with the new definition and are therefore not directly comparable.
Green loans are loans to municipalities, county municipalities and entities owned by municipalities. The loan must have a clearly positive impact on the climate and environment, and must meet specific criteria, depending on the nature of the project. The project categories are water and sewage services, waste management, transport, and building construction and renovation. The criteria are based on the Green Bond Principles, Climate Bond Initiative Taxonomy and Nordic Public Sector Issuers Position Paper on Green Bonds Impact Reporting. The criteria are revised as and when required.
Green bonds are bonds classified as green and having third-party verification. This does not include bonds that are already included in KLP’s investments in renewable energy in Norway, see above.
Infrastructure includes investments in funds for sustainable infrastructure in Europe.
Fossil energy covers KLP’s investments in companies classified as oil and gas companies, including those engaged in exploration, extraction, and refining. Transport and oil service companies are not included.
KLP’s property portfolio and own operations
Number of flights is based on figures provided by our travel agency, and it is the number of legs that is reported. A leg means an individual distance.
Greenhouse gas emissions from flights are also based on figures from our travel agency. They use calculation methods and emission factors from ICAO (International Civil Aviation Organization).
Energy consumption from KLP’s own offices is a material source of greenhouse gas emissions for KLP. The energy consumption at KLP’s own offices is not temperature adjusted but shows actual consumption. KLP’s own offices are defined as the office premises in which the KLP Group’s employees work. In previous years, we have included only KLP’s offices in Norway. This year, however, we include offices used by KLP Eiendom in Stockholm and Copenhagen. The energy consumption data is obtained from our energy monitoring system.
Energy consumption in KLP’s property portfolio is the average 12-month, climate-adjusted specific energy consumption in buildings managed by KLP itself. These are properties that KLP owns, has responsibility for operating and maintaining, and where it is in a position to implement and measure the impact of environmental initiatives. KLP has such buildings in Oslo, Trondheim, Copenhagen, and Stockholm. All of these have energy surveillance systems, where energy and water consumption are registered and monitored. In most of the buildings, tenants’ energy consumption is also included, so that we have an overview of the total energy consumption for the buildings. Buildings’ energy consumption is temperature adjusted to allow the effect of energy saving initiatives to be measured.
In the first quarter 2021, KLP started using a new energy and environment follow-up system for properties in its portfolio. This has taken some time to implement. Due to a lack of data from some properties, the reporting does not include the energy consumption from all buildings. Obtaining data from tenants has been a particular challenge, since they must now give their consent before KLP can collect this data. When data from all buildings is included in the new system, we will have a better basis for reporting than before.
KLP has a large portfolio of buildings, which evolves over time. Some buildings may also change patterns of use for shorter or longer periods of time, in connection with a change in tenants, for example.
It may occasionally be impossible to obtain correct figures for a variety of reasons, such as faulty meters or overdue reporting of figures from our subcontractors. This is taken into account in that the report includes only those buildings that KLP manages itself and that have comparable operating conditions 12 months back in time from the reporting date. Although this means that the buildings on which KLP reports vary slightly from year to year, our assessment is nevertheless that this will identify the correct trends in the company’s property base.
Innovation and social development
Lending
Lending for roads and transport covers, for example, loans for road and infrastructure projects and the procurement of means of transport.
Lending for publicly owned real property covers, for example, loans for school buildings, town halls and other municipally owned buildings.
Lending to the public sector and associated entities covers the funding of various types of investments in municipalities, country municipalities and entities owned by municipalities, such as preschool nurseries, care homes for the elderly or schools.
Lending to water and sewage services, and waste management covers loans to various projects relating to the water supply, sewage and waste management.
Seed capital investments
Seed capital investments are investments in seed funds relating to research institutions in Norway. The reported figure is the market value of the investments made. At the close of 2021, KLP had invested in 13 different seed funds.
Banking and finance in developing countries
Investments in banking and finance in developing countries are KLP’s investments in the Nordic Microfinance Initiative (NMI) and Nor Finance. NorFinance is an investment company that KLP owns in partnership with Norfund. The investments are made as part of KLP’s impact investment portfolio, which is one of the tools set out in the Guidelines for KLP as a Responsible Investor. The purpose is to achieve both a financial return and benefits society.
KLP as a workplace and employer
Number of employees are permanent employees of the KLP Group in Norway, Sweden, and Denmark, including employees on welfare leave and those who work part-time.
Sickness absence is self-certified or medically certified sickness absence among permanent employees. Short-term sickness absence is defined as absence of 1–3 days. Long-term sickness absence is defined as absence of 4 days or more.