Mitigating biodiversity loss guides our operation

Biodiversity is a requirement for a happy, healthy life. Biodiversity loss contributes to major risks to the economy and companies’ business.

Biodiversity preservation is an essential part of our environmental policy. Varma is committed to common agreements to end biodiversity loss and put nature back on a path to recovery by 2030.

In its Biodiversity Roadmap, Varma outlines policies that can help prevent biodiversity loss. We have looked into the biodiversity loss-related risks to our investments. The objective is to make attending to biodiversity an integral part of the investment decision process.

Attending to biodiversity in our investments is discussed in our review of responsible investment 2024.

Varma’s biodiversity efforts in numbers

We surveyed the biodiversity policies of 318 companies

In 2024, we surveyed our investee companies’ readiness to take biodiversity into account in their operations. The survey included 318 companies. Biodiversity is taken into account in Varma’s investment activities in all asset classes except government bonds.

High-risk industries account for 35% of Varma’s investments

Of the companies in Varma’s investment portfolio, 35 per cent operate in industries that are classified as risky due to biodiversity loss. The industries classified as such are oil and gas, construction and packaging materials, the mining industry, forest industry, automotive industry, construction industry, transport industry, food and beverage industry, pharmaceuticals industry, semiconductor industry and chemical industry, textiles, apparel and luxury goods, beauty care products, waste treatment and electricity generation.

43% of companies in high-risk industries plan to take action

Of our investee companies, 43 per cent had expressed their intent to take action to consider or compensate biodiversity loss, and 30 per cent had set targets to consider the prevention of biodiversity loss in their operations.

We engage in investors’ global joint initiatives

Varma actively engages in international investor initiatives, one example of which is the financial institutions’ Finance for Biodiversity pledge.

Varma takes part in the Nature Action 100 co-operation initiative, which is focused on driving greater corporate ambition and action to reverse nature and biodiversity loss.