Investors must be prepared for the changes brought by climate change
Climate change will have substantial financial, social and environmental impacts on current and future generations.
Investors must be prepared for the changes brought by climate change. Greenhouse gases from human activities have already changed the climate and caused financial risks for investors. The operating conditions of several industries and companies are on the verge of a change. In some industries, such as electricity generation, the change has already begun.
Mitigating climate change calls for substantial and long-term emission reductions. The goal of the Paris agreement is to limit the increase in the global average temperature to well below 2 °C above pre-industrial levels. This requires a global transformation to a low-carbon economy as well as an appreciable reduction in the use of fossil fuels.
We support actions to mitigate climate change and make adapting to the change possible.
Varma has previously committed to aligning its investments and investment processes with the Paris Agreement. In the course of 2020–2035, we will develop our portfolio towards carbon neutrality by
- investing in companies whose solutions enable emission reductions and who take the progression of climate change into account in their operations
- fostering collaboration in the financial markets in order to promote climate change mitigation and adaptation
- focusing on analysing the financial risks of climate change in the investment portfolio
We aim for a carbon-neutral portfolio by 2035, provided that the investment environment allows it.