Case Study: Developing a Climate Investment Policy
Varma Mutual Pension Insurance, the most solvent earnings-related pension company and largest private investor in Finland, is committed to ensuring that their investments are in line with the 2-degree target and has set itself ambitious targets to minimise its climate impact across all asset classes. Varma's goal is to reduce the carbon footprint of its equity investments by 25% in relation to the company's revenue between 2015 and 2020.
Under the Montréal Carbon Pledge initiative, Varma has committed to measure and publicly disclose the carbon footprint of its listed equity investments on an annual basis. Delivering the required transparency and analysing carbon risks and climate impacts of its investments was the main challenge for Varma.
South Pole established the footprint of EUR 16 billion of Varma's investments, 39% of its total EUR 41.3 billion portfolio. South Pole also developed a roadmap and implementation plan for reducing the climate impact of Varma's investments and provided internal and external workshops on the impact of climate change on investments.