The progress of Varma’s climate targets is outlined in the Review of Responsible Investment 2025. This is the second time the review has been published, and it is available in full on our website.
Responsible investment is a key component of our Sustainability Programme. In line with our strategy, we focus on actions that truly make a difference. In our investment decisions, we assess not only return expectations, but also environmental, societal and governance factors.
The climate targets cover Varma’s investment portfolio in its entirety
The climate targets cover Varma’s investment portfolio in its entirety. The share of investments that explicitly account for climate and environmental impacts, i.e. climate allocation, is already more than 43 per cent of the investment portfolio. Our goal is to raise the share of climate allocation to 50 per cent by 2027. The results of our climate work are reflected in the decline in the carbon intensity of listed equities and corporate bond investments.
“The climate allocation already accounts for close to 44 per cent of our total portfolio. Meanwhile, we have developed the structure of the portfolio to support the transition to a low-carbon economy. Based on our scenario calculations, Varma’s portfolio is relatively well hedged against climate risks compared to the global market,” says Vesa Syrjäläinen, Development Manager, Responsible Investment.
Alongside our focus on climate change, we have strengthened our work to promote biodiversity. Biodiversity loss has emerged alongside climate change as a key environmental theme steering investments. We systematically assess nature-related impacts as part of investment decisions and risk management.
“Responsible investment is a way for us to secure long-term investment returns and manage risks in a rapidly changing world,” Syrjäläinen explains.
From Exclusion to Engagement
The Review of Responsible Investment 2025 also outlines our principles for responsible investment. Last year, a key focus was to shift emphasis from investment exclusions towards engagement. Careful assessment of sustainability risks is particularly critical in high-risk sectors.
“Meaningful impact is achieved through engagement. Active ownership allows us to promote sustainability in practice, and to engage in open dialogue with our investees,” points out Syrjäläinen.
One of the key channels for engagement is participation in the nomination and appointment of boards of directors.
Participation in nomination boards is a key element of good governance. In 2025, Varma was involved in the nomination boards of 38 Finnish companies and participated in the annual general meetings of companies in which we hold an ownership interest. Overall, we took part in more than 700 shareholder meetings globally.
In 2025, we conducted direct engagement with eight companies on a range of material sustainability issues, including corruption, labour rights, business ethics, governance violations, competition law, human rights, information security and environmental impacts.
Last year, Varma updated its principles for responsible investment regarding the defence sector. The updated principles enable responsible and risk-aware investment in the evolving defence sector.
Key figures of responsible investment in 2025
- The share of investments that explicitly account for climate impacts, i.e. climate allocation, account for 43,7 per cent of Varma’s investment portfolio, while the goal is to increase the share to 50 per cent by 2027.
- Absolute emissions across Varma’s investments have declined by 55 per cent compared to 2021.
- In 2025, we conducted direct engagement with eight companies on a range of themes.
- In 2025, Varma was involved in the nomination boards of 38 Finnish companies and took part in more than 700 annual general meetings globally.