Varma invests in a new climate fund in the Japanese market

Varma is making a significant investment in Japanese low-emission companies through a new, exchange-traded ETF fund tailored for Varma. The new ETF investment was listed on the Tokyo Stock Exchange on December 3, 2024.

"This is a cost-effective way to support positive climate development and at the same time generate returns from the Japanese market. It is a continuation of our previous climate-sensitive ETF fund investments in the markets of the United States, Europe and developing countries," says Timo Sallinen, Varma’s Head of Listed Securities.

The fund aims to invest in Japanese companies that have set science-based SBT emission reduction targets and are actively working to reduce their carbon dioxide emissions.

The fund is managed by Japanese asset management firm Nomura Asset Management, which manages $262 billion in assets through ETFs. Nomura is one of Asia's largest ETF fund managers.

The investment is part of Varma's climate targets

The investment is related to Varma's own climate targets. Varma is the only Finnish pension insurance company that has set its climate targets in accordance with the international climate initiative SBT. As part of its climate targets, Varma is committed to increasing the share of companies that have set SBT targets in listed equity and fixed income as  well as in real estate funds to 51 per cent by 2027.

The vast majority of Varma's emissions are caused by the emissions of investees outside Varma's own operations. By investing in companies that are making progress in reducing their carbon footprint and promoting low-emission initiatives, investors can support global efforts to combat climate change.

"At Varma, we will continue to develop new ETF products that take sustainability aspects into account. Nomura is one of our key partners," says Timo Sallinen.

More info on:

Timo Sallinen, Investment Director, Listed Investments, tel. +358 10 244 7645 or timo.sallinen(at)varma.fi
   

Marjut Tervola, Communications Manager, tel. +358 45 673 0120 or marjut.tervola(at)varma.fi