New engagement targets TCFD disclosure in an industry that is often-overlooked

The Nordic Engagement Cooperation (NEC), today releases its annual report. The collaborative engagement network consists of four Nordic institutional investors: Folksam Group, Ilmarinen, KLP and PFA Pension, in cooperation with engagement services provider Sustainalytics. Whilst norms-based engagement remains a core priority for the collaboration, a new engagement project with focus on climate change challenges and disclosure was launched in 2019.

The focus of the new proactive engagement was to encourage the implementation of the Taskforce on Climate-related Financial Disclosure (TCFD) reporting framework. Dialogue targeted the agricultural sector, and more specifically meat and dairy companies. These companies typically have high exposure both to physical and transitional risks from climate change and represent a significant source of greenhouse gas emissions.

Four multinational companies were targeted in the dialogue, of which three have so far entered into constructive dialogue. The engagement continues throughout 2020.

A gradual movement towards improved reporting on climate change was apparent amongst the companies. They showed awareness of the TCFD framework and signalled they are moving towards alignment.

However, it was clear from the dialogue that there is still significant action required from companies to reach the TCFD standard on climate reporting and most of the companies are only in the very early stages of actions to reduce overall greenhouse gas emissions.

Andreas Stang Senior Portfolio Manager – Head of ESG at PFA; “At PFA we believe in active ownership and the influence that investors have when pushing for increased ESG performance where we invest. Working with the other investors through the Nordic Engagement Cooperation is the perfect opportunity to amplify our voices while learning from other leading ESG investors.”

Niina Arkko, Responsible Investment Analyst at Ilmarinen: “Climate change is such a massive risk factor for companies. TCFD reporting framework helps companies to make the link between climate change risks and the financial impacts to their business and it also helps companies to improve their processes and become more climate resilient.”

Emilie Westholm, Head of Responsible Investments at Folksam Group: “Folksam Group has had a fantastic journey with the Nordic Engagement Cooperation for more than ten years. Working with other likeminded investors leads to results that we can all be proud of.”

Marte Siri Storaker, Advisor, Responsible Investment at KLP: “It has been a great pleasure to collaborate with Folksam, Ilmarinen and PFA Pension on engagements through the Nordic Engagement Collaboration. I have learned a lot from my colleagues in the Nordics. We have engaged with companies on many difficult cases and I am very pleased with the results the group has achieved.”

Read the report here.

For further information, please contact:

Andreas Stang, Director – Head of ESG at PFA

+45 24 97 07 52,

Emilie Westholm, Head of Responsible Investments at Folksam Group


Niina Arkko, Responsible Investment Analyst at Ilmarinen Mutual Pension Insurance Company

+358 407 037 614,

Marte Siri Storaker, Advisor, Responsible Investment at KLP

+47 414 69 714,

Emma Henningsson, Associate Director, Client Relations, Nordic Region at Sustainalytics

+46 70 787 0304,

Nordic Engagement Cooperation (NEC) consists of four Nordic institutional investors: Folksam from Sweden (, Ilmarinen Mutual Pension Insurance Company from Finland (, KLP from Norway ( and PFA from Denmark ( To complement our own engagement, we have made the strategic decision to coordinate some of our engagement activities with companies on environmental, social and governance issues. Collectively we have approximately €213 billion in assets under management as of the end of 2018. Engagement refers to interactions between investors and current or potential investees undertaken to influence Environmental, Social and Governance (ESG) practices and/or improve ESG disclosure.

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