Varma to invest €500m in new climate fund listed on Tokyo Stock Exchange

Written by Adam Cadle

04/12/2024

Varma is to invest €500m in a tailor-made ETF fund listed on the Tokyo Stock Exchange that takes climate impacts into account.

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.

Furthermore, the fund is managed by Japanese asset management firm, Nomura Asset Management, which manages $262bn in assets through ETFs.

"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," Timo Sallinen, Varma’s head of listed securities, said.

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 fund to 51% by 2027.

Related Articles