Varma's climate policy targets reducing the carbon footprint of its investments by 2020 in various asset classes including listed equities (-17%), listed corporate bonds (-28%), and real estate (-17%). For listed equities, Varma achieved its 2016 and 2017 targets, with carbon intensity decreasing 24% compared to 2015 and carbon footprint decreasing 21%. Carbon footprint per invested capital also decreased 23% for listed equities. Similarly, listed corporate bonds and direct real estate saw reductions in carbon intensity and footprint compared to 2015, achieving Varma's climate targets.

1. Carbon Footprint of Varma’s
Investments 2018
CarbonFootprint of Varma’s Investments 20181

2. Climate policy targets
In Varma’s climate policy for investments, the short-term target is to reduce the carbon footprint in different
asset classes by 2020. The long-term target is to bring the portfolio in line with the Paris Climate Agreement.
Listed equities Listed corporate bonds Real estate
-17% -28% -17%
Target -25% Target- 15 %
2016 target
achieved
2017 target
achieved
Target -15%
Target 184 tCO2/M€ Tavoite 28.73 tCO2/brm2
Target 177.75 tCO2/M€
RealisedRealisedRealised
CarbonFootprint of Varma’s Investments 20182

3. Carbon footprint of listed equity investments
CarbonFootprint of Varma’s Investments 20183
Listed equity investments 31 Dec 2018 31 Dec 2015 Change Varma vs index
Carbon intensity
124 163 -24% -
Carbon footprint in relation to net sales
196 237 -17% -27%
Market value (EUR bn)
11.1 10.8 3% -
Carbon footprint (tCO2e)
1,431,053 1,810,908 -21% -29%
Carbon footprint in relation to invested capital
129 168 -23% -29%
Weighted carbon intensity (TCFD)
189 -

4. Carbon footprint of listed corporate bond investments
CarbonFootprint of Varma’s Investments 20184
Listed corporate bond investments 31 Dec 2018 31 Dec 2015 Change Varma vs index
Carbon intensity 96 171 -44% -
Carbon footprint in relation to net sales 156 217 -28% -47%
Market value (EUR bn) 3.7 3 23%
-
Carbon footprint (tCO2e) 1,118,218 1,535,094 -27% -53%
Carbon footprint in relation to invested capital 306 515 -41% -44%
Weighted carbon intensity (TCFD) 106.00 -

5. Carbon footprint of direct real estate investments
CarbonFootprint of Varma’s Investments 20185 (3)
Direct real estate investments 2018 2015 Change
Carbon footprint (tCO2) 43,579 58,050
Share of flats 20% 18%
Share of commercial properties 80% 82%
Carbon footprint in relation gross square metres
(CO2 kg/gross m2
)
27.9 33.8 -17%
Carbon footprint of flats in relation to gross square metres
(CO2 kg/gross m2
)
22.6 27.2 -17%
Carbon footprint of commercial properties in relation to gross
square metres (CO2 kg/gross m2
)
29.7 35.6 -17%
Market value of real estate portfolio included in the calculation
(EUR bn)
2.2 2.2
Share of flats 36% 29%
Shar of commercial properties 64% 71%
Sites included in the calculation as % of the market value of the
entire direct real estate portfolio
76% 66%