Mandatum AM AIFM has a goal to be carbon neutral by 2030. Mandatum AM Carbon Sink Real Estate I Ky is a fund vehicle designed solely to enhance biodiversity and to grow natural carbon sinks. The fund mainly invests in Finnish peatlands and other land areas that absorb carbon or enhance biodiversity. Together with emission reduction measures at its properties, the fund plays a material part in achieving the company’s sustainability goals.
The fund is also open to other professional investors.
Real estate consumes as much as 40 percent of energy globally, contains some 40% of the earth’s natural resources, causes 20-40% of global greenhouse emissions and as much as 50% of global carbon dioxide emissions. Therefore, improving the energy efficiency of existing buildings is one of the best and most cost efficient ways of reducing energy consumption and emissions. Mandatum AM AIFM works determinedly to reduce the carbon footprint of its real estate holdings, following its roadmap towards carbon neutrality. While reducing emissions, we also want to grow natural carbon sinks, at the same time advancing biodiversity.
The Carbon Sink Fund has three main objectives:
1. Protecting and advancing biodiversity
2. Preserving the forest, peatland and other real estate owned by the fund in carbon sink use, and
3. Taking active measures to grow those carbon sinks by e.g. peatland conservation and restoration projects and reforestation projects.
The fund’s primary objective is not to generate positive cash flow for its investors or financial profit for the fund management company. Any potential proceeds from the fund’s activities will be used to further enhance carbon sequestration into biomass, hence growing the natural carbon sinks.
Peatlands are the largest and most important storage of carbon in Finland. Some 70 percent of the country’s carbon is sequestrated in peat. Peat is also the largest and most effective terrestrial carbon storage, and the second largest carbon storage on the planet after the oceans. Executed correctly, conservation and restoration of peatlands stops their carbon leakage and the accumulation of peat restores carbon sequestration from the atmosphere.