Varma's 2020 sustainable developments plans for being carbon neutral by 2035
The Eur50.2bln Finnish fund has set out clear investment goals, including not investing in ETFs exposed to thermal coal
| Sustainability area | Areas Varma monitors | Indicator/guiding principle | 2020 |
|---|---|---|---|
| Mitigating climate change. Main target: carbon neutrality by 2035 | Climate allocation 20% of the portfolio by 2025 | % share of portfolio | 12.40% |
| Emissions from listed corporate bonds and equities down by 50% by 2027 (compared to 2016 levels) | % share of emission reduction | Equities, -16%; Corporate bonds, -25% | |
| Exclusion of thermal coal from direct equity investments and exchange-traded funds by 2025 and exclusion of oil exploration by 2030. | % share of investments in companies that rely on coal for more than 5% of their operations, % share of investments in equities in the oil explorations sector | Coal, 1.6%; Oil exploration, 0.51% | |
| Emissions-free electricity in real estate investments by 2025 | % share of emission-free electricity | 23% | |
| Emissions-free heating in real estate investments by 2030 | % share of emission-free heating | 19% | |
| Targets under the earlier climate policy: reduce by 2020 the carbon footprint of equities by 25%, corporate bonds by 15% and real estate investments by 15% from the 2015 level. | Reduction in carbon footprint,% | Equities, -29%; Corporate bonds, -23%; Real estate, -47% | |
| Carbon footprint reduction of Varma's own operations by 15% between 2015 and 2020 | Reduction,% | -82% |
