Finnish earnings-related pension provider Varma has set out its key sustainability considerations in line with the European Union’s Corporate Sustainability Reporting Directive (CSRD), which came into force this year.

The pension provider will for the first time publish a Sustainability Report alongside its 2024 Annual Report, which will focus on its work on climate change mitigation and adaptation, ensuring its customers' rights and livelihoods and safeguarding working conditions and equality for its employees.

Varma’s sustainability reporting will be based on a dual sustainability assessment carried out in 2023, in which it identified relevant sustainability themes for Varma and the associated impacts, risks and opportunities.

Commenting, Varma director of sustainability and communications, Hanna Kaskela, said: “As an investor, we have long focused on material sustainability issues across industries when assessing the sustainability of our investments. We use industry-specific standards for this assessment, as material issues vary significantly from one industry to another.

“For example, for a mining company, environmental responsibility issues and safety are essential, while for a construction company, in addition to safety, the material from which buildings are made and how they are heated are essential.”

For Varma, its key sustainability themes highlight the climate and human rights impacts of its investments, the systemic risks to its portfolio from climate change and biodiversity loss, and the risks of human rights or good governance violations.

Looking at Varma’s own operations, considerations include clients’ rights and safeguarding their livelihoods and responsible business practices. It will also consider the climate impact of its operations and the working conditions and equality of its employees.

For direct real estate investments, environmental impacts related to climate change and resource efficiency, as well as aspects related to the safety of workers and tenants in the value chain are relevant for Varma. For products and services purchased, in addition to their climate impact, corporate culture and supplier relationships are also key sustainability issues for Varma.

“We will update our materiality assessment in the coming years as standards in our industry are published or otherwise as needed," Kaskela added.

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