Varma, Helsinki, is investing €500 million ($527 million) in a bespoke exchange-traded fund listed on the Tokyo Stock Exchange that looks to take climate impact into account, according to a news release.
The fund aims to invest in Japanese companies that have set science-based emission reduction targets and are actively working to reduce their carbon dioxide emissions. It will be managed by Japanese asset management firm Nomura Asset Management, which manages $262 billion in assets through ETFs and is one of Asia's largest ETF managers.
"This is a cost-effective way to support positive climate development and at the same time generate returns from the Japanese market. It is a continuation of our previous climate-sensitive ETF fund investments in the markets of the United States, Europe and developing countries," said Timo Sallinen, head of listed securities at Varma, in the news release.
Varma is the only Finnish pension insurance company that has set its climate targets in accordance with the international climate Science Based Targets initiative. As part of its climate targets, Varma is committed to increasing the share of companies that have set SBT targets in listed equity and fixed income, as well as in real estate funds, to 51% by 2027.
Varma had total assets of €62.1 billion as of June 30.
