Varma invests €230m in State Street’s sustainable climate bond funds

Written by Adam Cadle

14/06/2021

Varma has invested €230m in the Sustainable Climate Corporate Bond Funds of State Street Global Advisors.

The funds aim to achieve a significant reduction in investors’ exposure to carbon emissions and allocate capital to fund the transition to a low carbon economy.

In addition, the funds invest in European and US corporate bonds. They are aligned with the goals of the Paris Agreement and the funds have 70% lower carbons emissions compared to the benchmark index at launch. The funds prioritise investments in green bonds and companies that are well prepared for the transition to a low-carbon economy. The funds more extensively minimise sustainability risks related to social and governance matters.

“Mitigating climate change has been one of the main goals of Varma’s responsible investment for several years now," Petri Ala-Härkönen, director, FICC, at Varma, said.

“These index funds gave us the opportunity to increase our climate allocation also in corporate bond investments. The Sustainable Climate Corporate Bond Funds are well aligned with Varma’s climate-related targets. In terms of mitigating climate change, we aim for a carbon-neutral investment portfolio by 2035.”

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