Publishing its 2023 Sustainability Report this week, ICMIF member LocalTapiola (LähiTapiola, Finland) has said it wants to be a trendsetter in effective sustainability in its sector – across Finland. The Sustainability Report 2023 describes the progress of LocalTapiola’s work within the framework of the mutual insurer’s sustainability programme, which defines the Group’s common sustainability goals and concrete steps to achieve the goals in the coming years. LocalTapiola says sustainability is a prerequisite for its long-term, profitable business.

LocalTapiola’s President and CEO Juha Koponen said: “The situation in Finland and Europe has become more uncertain, and there are no easy quick solutions in sight. The protracted war in Ukraine and weak international economic development are increasing tensions. In the happiest country in the world, a heated discussion atmosphere, differentiated regional trends, citizens’ deteriorating financial skills and concerns about the future of safety nets and services weigh heavily on the minds of Finns. The best remedy for these concerns is action by states, companies and communities, as well as individuals, to build a sustainable future. LocalTapiola is committed to this work.”

In 2023, customers focused especially on safeguarding their health and finances. LocalTapiola says it wants to increase the effectiveness of its prevention work. In addition to its established areas of prevention work, there are new risks, especially climate, mental health and cyber risks, which the mutual says are now challenging it to further develop its product and service portfolio.

The sustainability programme drives LocalTapiola’s goals

At LocalTapiola, sustainability work means continuous development of operations. Last year, they accelerated the integration of their sustainability work into the everyday life of the Group’s companies by putting their sustainability goals into a clearer form, LocalTapiola’s sustainability programme. The sustainability programme provides a common framework for the sustainability work of the Group’s companies.

“The programme defines the Group’s common sustainability goals and key actions until 2026. In LocalTapiola’s sustainability programme, we have set targets for raising the level of damage prevention, strengthening our position as a responsible investor and integrating sustainability into customer and risk selection and partner activities,” says Eeva Salmenpohja, LocalTapiola’s Vice President, Sustainability and Communications.

Achieving these goals requires strong input from each LocalTapiola company and genuinely effective measures. LocalTapiola says they have succeeded when they are able to prevent damage and offer customers responsible insurance, compensation and investment services. The sustainability programme also sets targets for the competence of personnel, and the achievement of sustainability goals is included in the remuneration of both management and other personnel.

Helping prepare for the risks of climate change and mitigating their impacts

Climate change affects customers and services, as the conditions and risks of working, entrepreneurship and living are changing. As an operator in the insurance sector, LocalTapiola says it can contribute to preparing for the impacts of climate change.

“We support climate research and reducing companies’ emissions with donations. As an expert in risk management and a risk sharer, we can help prepare for the risks of climate change and mitigate their effects,” says Juha Koponen. The sustainability programme also aims to act as a regional partner in climate change adaptation. This work has been helped thanks to LocalTapiola’s support for the Finnish Meteorological Institute’s research project, which produces more detailed regional information on the effects of various extreme weather phenomena.

Together with its partners, LocalTapiola contributes to climate change mitigation. One example of this is LocalTapiola enables Finland’s Chamber of Commerce to implement a climate programme that supports the climate expertise of 200 Finnish SMEs. The programme will start in January 2024. In addition, it will participate in the research project Piloting Innovative Insurance Solutions for Adaptation (PIISA), launched in 2023, in which adaptation to climate change in Europe is promoted through product and service development in the insurance sector.

Other sustainability highlights from 2023

• In accordance with LocalTapiola’s sustainability programme, the mutual says it wants to further strengthen its position as a responsible investor. The goal is to comprehensively integrate sustainability aspects also into insurance companies’ own investment activities.
• LocalTapiola Asset Management was named by the SFR survey, aimed at institutional investors, for the sixth consecutive year in 2023. LocalTapiola Asset Management received the Challenger Series Responsible Investment Award and the Gold Quality Award.
• In line with its climate targets, LocalTapiola Group wants to bring the carbon dioxide emissions of insurance and investment to net zero by 2050.
• The goal is to achieve carbon neutrality in LocalTapiola’s own operations by the end of 2025.
• In 2023, LocalTapiola Group companies supported communities with EUR 3.2 million of donations. This included EUR 459,000 to projects that support mental well-being and to low-threshold preventive service providers. The Group supported projects that improve the everyday safety of local communities and sparsely populated areas and secure voluntary rescue operations with EUR 445,000.
• By sharing good financial skills, LocalTapiola increases young people’s faith in the future. LocalTapiola supports the development of learning modules for Nuorten yrittäjyys ja talous (NYT, a national, non-profit organisation) and brings important expertise and a genuine connection to working life to the organisation and its users. Together with NYT, LocalTapiola wants to ensure that children and young people learn important financial and working life skills whilst they are at school.