varma's carbon footprint

Carbon footprint of Varma’s listed equity investments

Varma’s carbon footprint | 23.5.20161 (3)

• The carbon footprint covers both direct greenhouse gas

emissions from sources owned or controlled by the

companies (scope 1), and indirect emissions from the

generation of mostly purchased energy (scope 2).

• Varma’s carbon footprint includes both direct listed

equity investments and some index-linked equities.

• The carbon footprint and the key figures based on it

have been calculated on the basis of Varma’s holdings.

• The carbon intensity of the investments is based on the

companies’ weight in equity investments. The figure is

calculated by adding up the carbon intensity

(emissions/revenue) of the companies in the portfolio,

and multiplying it by the company’s weight in

investments.

• The figures were calculated by the Swiss South Pole

Group.

Varma’s listed equities Varma Benchma

rk index

Difference

Market value (EUR bn) 10.8

Carbon footprint (tCO2e) 1,810,908 2,648,391 -837,482

Share of disclosing companies (in

relation to capital)

85% 83%

Carbon footprint in relation to

revenue (financed tCO2e/€ mill.

financed revenue)

237 324 -27%


invested capital (tCO2e/€ mill.

invested)

168 246 -32%

Carbon intensity (weighted

emissions tCO2e/€ mill. weighted

revenue)

163 188 -13%

Carbon footprint of Varma’s listed corporate bond investments

• The calculation covers direct listed corporate bond

investments, some index-linked corporate bonds and

some unlisted corporate bonds.

• The carbon footprint covers both direct greenhouse gas

emissions from sources owned or controlled by the

companies (scope 1), and indirect emissions from the

generation of mostly purchased energy (scope 2).

• The calculation is an approximation, as there is no

standard concerning the criteria for the allocation of

emissions and the definition of debt.

• In Varma’s carbon footprint calculation, the corporate

bond owned by Varma is proportioned to the company’s

overall debt, and the emissions are allocated to Varma on

the basis of this proportion.

• The carbon footprint figures are high in relation to

equities, since the companies’ overall debt is usually

smaller than the market value of the equities.


Varma’s listed corporate bonds Varma Benchmark

index

Differenc

e

Market value (EUR bn) 3.0

Carbon footprint (tCO2e) 2,576,104 3,363,833 -787,729

Share of disclosing companies (in

relation to capital)

86% 72%


revenue (financed tCO2e/€ mill.

financed revenue)

244 446 -45%


invested capital (tCO2e/€ mill.

invested)

865 1,129 -23%

Carbon intensity (weighted

emissions tCO2e/€ mill. weighted

revenue)

171 333 -49%

Carbon footprint of Varma’s direct real estate investments


Varma’s direct real estate investments Varma

Market value of the real estate portfolio included in the calculation (EUR bn) 2.2

Flats’ share of the market value 29%

Business premises’ share of the market value 71%

Share of the market value of the sites included in the calculation of the entire direct real estate

portfolio

66%

Carbon footprint (tCO2) 58,050

Flats’ share of the carbon footprint 18%

Business premises’ share of the carbon footprint 82%

Carbon footprint in relation to gross square metres (CO2 kg/gross m2) 33.8

Carbon footprint of flats in relation to gross square metres (CO2 kg/gross m2) 27.2

Carbon footprint of business premises in relation to gross square metres (CO2 kg/gross m2) 35.6

varma's carbon footprint

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