Varma progresses towards climate targets – the in-use electricity and heat of Varma’s residential real estate investments will be CO2-free in 2025

Switching Varma’s standing residential real estate investments to CO₂-free in-use heat and electricity is part of Varma’s ambitious climate targets. Varma has approximately 4,600 residential units around Finland, with the majority located in the largest cities. 

“This year, Varma’s apartments will be heated either using geothermal heating produced on site or with district heating certified with a guarantee of origin, which is generated using renewable energy sources or waste heat. This is an important step towards achieving our climate targets,” says Varma’s Asset Manager Riina Komulainen.

District heating generated using CO₂-free heating sources has already been used at Varma’s residential properties in Espoo, Tampere, Turku and Jyväskylä, among others. Now, CO₂-free district heating with a guarantee of origin has been selected also for properties in Helsinki and Vantaa.

Renewable district heating used for heating the properties can be generated using wind power, heat pumps or biomass, for instance. Waste heat is recovered from industrial and, for example, data centres’ processes.

The guarantee of origin ensures that the energy is produced as promised and that it cannot be sold twice.

Towards permanent CO₂-free heating and electricity 

So far, Varma has succeeded in reducing the energy consumption-based CO₂ emissions of the real estate investments under its maintenance responsibility to less than half compared to 2015. Our goal is for the in-use heat purchased for our properties to be CO₂-free in both residential real estate investments and commercial properties by 2030.

“Our residential real estate investments will reach this target ahead of schedule, for the year of 2025. Varma has been purchasing electricity generated with wind power for its standing residential assets for some time, but this year also the heating will be generated free of CO₂ emissions,” says Varma’s Residential Real Estate Investment Manager Sarianna Sipola.

“We have set ambitious targets, and we have worked hard to achieve them through our active measures. And our work continues,” Sipola says.

The reduction in emissions from Varma’s real estate is explained by the switch to CO₂-free district heating and electricity, and the energy renovations and energy-efficiency measures carried out at the properties. Over the past six years, energy renovations have been carried out at 22 residential properties still owned by Varma.

Ground source heat pumps, exhaust air heat pumps and solar panels have been installed. Varma has also implemented other energy efficiency and production measures, such as modernised building automation systems and installed EV charging provisions.

“The annual CO₂ emission cuts achieved through the energy renovations have come to around 1,500 tonnes of emissions (tkg) together with other measures. This corresponds to, for example, the annual carbon footprint of 150 average Finns*,” Komulainen says.

“We also provide our tenants with guidance on sustainable living by, for example, sharing tips on how to save energy on the info screens in the buildings’ lobbies. The feedback we have received from tenants also shows a clear interest in sustainability,” Komulainen adds.

Varma’s SBTs also apply to real estate investments  

The sustainability of Varma’s real estate investments is guided by the ESG roadmap for direct real estate investments created in 2023. The sustainability of real estate investments has, however, been developed over several years.

The emission reduction targets for real estate investments are part of  the emission reduction targets set by Varma in line with the SBT initiative. Companies that have joined the international climate initiative have committed to reducing their emissions in compliance with the Paris Agreement. To date, Varma is the only pension company in Finland that has set emission targets for its operations in accordance with the SBTs.

*The estimate is based on the Finnish Innovation Fund Sitra’s calculation of Finns’ carbon footprint. 

Additional Info:

Sarianna Sipola, Residential Real Estate Investment Manager, tel: +358 40 517 5937

Marjut Tervola, Communications Manager, tel: +358 45 673 0120