97% of Varma’s fund managers aligned with its responsible investment principles

Written by Adam Cadle

27/09/2023

Ninety-seven per cent of Varma’s fund managers have said their responsible investment principles are either partially or fully aligned with the insurer.

Furthermore, more than four out of five of the fund managers have signed the UN Principles for Responsible Investment (UN PRI), and the majority of them also have an ESG policy covering all investments.

The fund management companies were presented with 68 questions on, for example, how they take into consideration their investees’ human rights issues, whether they have an organisation-wide ESG policy, and whether the fund management companies have joined international investor initiatives aiming to reduce emissions, such as the SBT initiative advocating for science-based emission reductions. The survey covered all of Varma’s asset classes. The value of the investment assets in these investments is €31.9bn, i.e. 56.8% of Varma’s entire investment portfolio.

Of the respondents, 62% said they report to Varma any norm violations against the ESG principles. Norm violations are severe shortcomings in companies’ operations or operation chains that breach international agreements and laws. Sixty-six per cent of the fund management companies that engage in reporting said they report breaches as soon as they become aware of them.

“In monitoring norm violations, we use a database maintained by an external service provider. It is very important to bring norm violations to light because it helps us identify our own sustainability risks and monitor their development,” Hanna Kaskela, senior vice president, sustainability & communications at Varma said.

Related Articles