Varma Mutual Pension Insurance Co., Helsinki, has largely phased out investments in fossil fuels, coal mining and oil exploration from its €50.2 billion ($61.2 billion) portfolio.
As of Dec. 31, shares of oil exploration companies accounted for 0.5% of Varma's equity investments and exchange-traded funds, while 1.6% of the portfolio was invested in companies that rely on coal for more than 5% of their operations, Hanna Kaskela, director of responsible investment, said in an email.
As part of its climate goals, Varma intends to exit all investments in thermal coal by 2025 and exclude all oil exploration by 2030.
At the end of 2020, there were no coal mining companies and fossil fuel-linked investments in Varma's portfolio.
"Mitigating climate change requires us investors to operate in a way that leads to a reduction in the use of fossil fuels. We don't want to support the kind of business that puts the survival of future generations at risk," Ms. Kaskela said Friday in a news release.
Separately, Varma said it invests 12.4% of its portfolio in companies that benefit from actions aimed at mitigating climate change.