climate policy for varma's investments

Climate policy for Varma's

investments

26 May 2016 | Climate Policy1

Varma is the first Finnish earnings-related

pension company to publish a climate policy

for its investments. It covers all asset classes

and outlines how Varma mitigates climate

change in its investment operations.


“We are developing our

portfolio such that our

investments will be in line

with the 2-degree target.”

Varma’s CIO Reima Rytsölä.

Varma’s goal is to reduce the carbon footprint

of its investments by 2020

• by 25% in listed equity investments

• by 15% in listed corporate bond

investments and

• by 15% in real estate investments

In the longer term,

Varma will focus its

investments on investees

that are low carbon or

that have a climate

strategy that aims for a

low-carbon society.

Mitigating climate

change is one of Varma’s

CSR targets.


Listed equity investments

The target will be achieved by investing in

companies with the best practices. We will

determine companies’ preparedness for

climate change during meetings with the

companies and by consulting various sources

of information. We are establishing a new

portfolio under the theme of climate change.

To reach the target, we will invest in

companies with the best practices and take

into account the carbon-intensiveness of their

operations as part of the selection process

and sector allocation. In our meetings with

companies, we will influence the attention

that is paid to climate change in their

operations.

Listed corporate bond

investments

In buildings, carbon dioxide emissions are

mainly caused by energy consumption arising

from electricity and heat production, which

we will reduce by improving the energy

efficiency of the buildings. As a general rule,

Varma’s most important buildings will be

certified according to the BREEAM

environmental rating system by 2025.

Real estate


Varma is establishing a portfolio under the

theme of climate change. It will be made up of

• companies whose operations benefit from

climate change mitigation, for instance in

technology and renewable energy

production.

• companies that are prepared to make the

move to decarbonize

“As a major investor, we

have the opportunity to

influence companies and

encourage them to

reduce their carbon

footprint.”

Varma’s CIO Reima Rytsölä.


Varma recognises the importance of climate

change to its investment activities and the

long-term development of the economy. We

support actions to mitigate climate change

and adapt to the upcoming changes.

Varma has signed the

CDP and joined the

Montréal Carbon Pledge

initiative, in which

investors commit to

measure and publicly

disclose the carbon

footprint of their listed

equity investments on an

annual basis.


climate policy for varma's investments

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