Report on State corporate holdings 2021 published in English: shareholdings generate EUR 2.1 billion in revenue, State now monitoring overall emissions
In 2021, the prolonged COVID-19 pandemic weakened the ability of state-owned companies to generate revenue, while the State continued to provide financial support to the transport sector. The State received EUR 2.1 (0.9) billion in revenue from its shareholdings, with the value of the portfolio totalling approximately EUR 47 (47) billion. In this year’s report on its annual accounts, the State has now also begun reporting on the attainment of sustainability objectives in its portfolio. For example, it has begun monitoring the development of overall emissions from corporate holdings.
“In 2021, state-owned companies demonstrated good resilience amid the prolonged COVID-19 pandemic,” says Kimmo Viertola, Director General of the Ownership Steering Department at the Prime Minister’s Office.
The prolonged pandemic also weakened companies’ profitability and ability to pay dividends in 2021. As the pandemic continued, the State stepped in to support the nationally significant transport sector through capitalisations and loans. The end of the year saw changes in the global market situation, characterised by an energy crisis resulting in high electricity and gas prices.
In 2021, revenue from corporate holdings totalled EUR 2.1 (0.9) billion, which was made up of dividend income and capital repayments. At the end of 2021, there were 68 state-owned companies and the total value of State holdings was approximately EUR 47 (47) billion.
This information was published in the Report on State Annual Accounts 2021, Annex 4 of which describes the development of the State’s corporate portfolio in 2021.
Companies required to set emission reduction targets
In its Annual Accounts Report, the State seeks to increase transparency with regard to its requirements, actions and influence in the sphere of corporate sustainability.
To monitor the impact of climate actions taken by state-owned companies at the portfolio level, the State has now analysed and reported on the carbon footprint of its holdings for the first time and will continue to do so annually going forward.
State-owned companies are required to take into account the goal of achieving a carbon-neutral Finland by 2035 and the target of limiting global warming to 1.5 degrees in line with the Paris Agreement on Climate Change. Companies are expected to report annually on their direct emissions and those generated indirectly through their value chains.
“Climate change mitigation requires significant emission reductions, and systematic monitoring of emissions will help keep us on the path towards carbon neutrality,” says Ministerial Adviser Katariina Sillander from the Ownership Steering Department, who specialises in sustainability issues.
“We still have room for improvement with regard to the exhaustiveness of our emissions data and in reducing greenhouse gas emissions more sharply. The current crisis poses a challenge for us, but as a rule, we stick to our ambitious climate targets even during crises,” says Kimmo Viertola.
In addition to climate issues, the newly published Report on State Annual Accounts discusses state-owned companies’ commitment to the UN Sustainable Development Goals (SDGs), outlines typical sustainability risks and opportunities, and describes how sustainability has been integrated into ownership steering.
Examining the gender distribution of boards and management of state-owned companies
The Report on State Annual Accounts contains information on the realisation of gender equality on the boards of directors and in the senior management of state-owned companies. In line with the Government’s gender equality objectives, the State aims to ensure that the boards of directors of state-owned companies have a balanced gender distribution.
The report revealed that the share of women among state-appointed board members has remained unchanged from last year at 46 per cent. Of board chairs, 23 per cent are women. Of the CEOs of state-owned companies, 14 per cent are women.
Inquiries: Kimmo Viertola, Director General, Prime Minister's Office, tel. +358 29 516 0026; Katariina Sillander, Ministerial Adviser, Prime Minister’s Office, tel. +358 29 160 030, [email protected]