Varma Mutual Insurance Pension Co., Helsinki, invested €200 million ($235 million) in a sustainable ETF launched by BlackRock, confirmed Timo Sallinen, Varma's head of listed securities.
BlackRock U.S. Carbon Transition Readiness ETF invests in large and midcap U.S. companies that are likely to benefit from a transition to a low-carbon economy.
The ETF's benchmark is the Russell 1000 Index.
The €50.2 billion Varma funded the investment with cash. Varma's listed equity sustainable investments are 20% of its total portfolio.
Over $1.2 billion was invested in the ETF on April 8 when it was listed on the New York Stock Exchange, according to a news release by BlackRock.
The $286.9 billion California State Teachers' Retirement System, West Sacramento, California also invested in the ETF, according to a news release on its website.
CalSTRS also invested in BlackRock World ex-U.S. Carbon Transition Readiness ETF.
"We are very proud to be able to promote sustainable investment together with BlackRock and other major global investors," Mr. Sallinen said in Varma's release. "This, in effect, allows us to show our support for companies that aim to lower their carbon emissions."
Varma's goal is to reduce the carbon footprint of its own investments and achieve a carbon-neutral investment portfolio by 2035, he added.