Varma joins Science Based Targets initiative

Written by Adam Cadle

10/10/2022

Varma has joined the Science Based Targets initiative (SBTi), which promotes emission reduction targets based on science.

Through joining the initiative, Varma has committed to reducing its greenhouse gas emissions in accordance with the Paris Climate Agreement.

The SBTi is a joint initiative formed by the Carbon Disclosure Project, the UN Global Compact, the World Resources Institute and the World Wide Fund for Nature, with its long-term goal to commit participating companies to net-zero emissions by 2050.

Companies participating in the initiative are required set their own short- and long-term goals, which must be approved by the SBTi.

The SBTI monitors these targets in stages and the realisation of the stages being completed is reported to the SBTi.

Companies also receive guidelines on how quickly and by how much emissions must be reduced.

“The intergovernmental climate panel IPCC has emphasised that it is still possible to stop global warming to 1.5 degrees, but we are dangerously close to the moment when the time window to achieve this is exceeded,” Varma director of sustainability Hanna Kaskela commented.

“Therefore, emissions must be reduced quickly. By committing to the SBTi initiative, we want to increase the transparency of our operations and ensure that our own climate actions are in line with international goals. As a responsible investor, this is important to us, as we require our investment targets to consider climate issues as well.”

Varma responsible investment development manager Vesa Syrjäläinen added: “The short-term SBT goals set for financial institutions are well in line with Varma's climate policy, so committing to the goals seemed like a natural step.

“At the same time, we also committed to setting longer-term goals, whose guidelines for financial institutions will be published at the beginning of next year.”

Since launching in 2015, more than 3,700 companies with US$38trn in assets have signed up as participants of the initiative.

According to SBTI's reports, companies committed to the initiative have succeeded significantly in reducing emissions related to their own operations compared to the average.

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