Varma Mutual Pension Insurance Co., Helsinki, invested €250 million ($296 million) in shares of 150 companies aligned with the United Nations' sustainable development goals, as part of its equity portfolio overhaul announced last year.
As part of that plan, the €45 billion Varma seeks to achieve carbon neutral portfolios by 2035.
In the second half of 2020, Varma intends to select an additional 15 to 20 companies for its actively managed equity portfolio that are demonstrating climate action and commitment to responsible consumption within developed markets in the U.S., Europe, Canada, Australia, Japan and Hong Kong.
Depending on market conditions, Varma, over the long term, will invest €500 million to €1 billion, Kaisa Ojainmaa, portfolio manager at Varma said in a news release.
Varma did not disclose the size of its total active equity allocation.
The added companies will support selected U.N. goals, including affordable and clean energy, good health and well-being, and industry, innovation and infrastructure.
"We invest in companies that strive to mitigate climate change through ambitious carbon emission reduction targets, or that are carbon neutral or create carbon sinks through their operations," Hanna Kaskela, director of responsible investment added in the release.
Investments in producers of controversial weapons such as nuclear and chemical weapons, oil companies, tobacco products have also been excluded from Varma's investments.
A spokesman could not be reached to provide additional details.