Varmas new climate targets Varmas Climate Policy for Investments - PowerPoint PPT Presentation

Varma’s new climate targets Varma’s Climate Policy for Investments

Carbon-neutral investment portfolio by 2035 We invest in companies that create solutions for reducing emissions and take the progression of climate 2035 change into account in their 2020 operations . We invest in companies that benefit from climate change mitigation by creating products and services to replace fossil fuels . Provided that there are also changes in the investment environment to make carbon neutrality possible.

Climate allocation 20% of the portfolio by 2025 2025 We invest in different asset classes ✓ whose business benefits from actions to 2020 mitigate climate change ✓ whose operations are low emission ✓ who have a clear strategic and science- based target of reducing greenhouse gas emissions ✓ whose operations offer carbon sinks

Listed equities, corporate bonds 50% reduction in emissions by 2027 2023 2025 2016 2027 We are exiting from oil exploration and thermal coal investments.

Index funds Private equity funds Renewable energy to account for Low-carbon funds to account 50% of electricity generation for 35% by 2025 investments by 2030 2025 2030

Real estate investments Fossil-free electricity by 2025 Fossil-free heating by 2030 2025 2030 For all significant properties BREEAM environmental certification by 2025

Timeline of Varma’s climate targets 2028 2030 2031 2032 2033 2034 2035 2020 2021 2022 2023 2024 2025 2026 2027 2029 Carbon-neutral portfolio Carbon intensity – 50%, Climate Policy update Carbon intensity – 30%, equities equities Carbon intensity – 30%, Carbon intensity – 50%, bonds bonds Climate Policy update Climate Policy update Climate Policy update Waste included in CO 2 Carbon intensity – 40%, equities Renewables 50% of electricity generation, emissions, properties Carbon intensity – 40%, bonds private equity investments Climate allocation 20% Gas 22 – 25% of electricity generation, 35% of index investments low carbon private equity investments Exit from coal, listed equities Exit from other fossil-based investments, Carbon footprint – 25%, equities Fossil-free electricity, properties private equity investments Carbon footprint – 15%, properties Energy savings – 10%, properties Exit from oil exploration, listed equities Carbon footprint – 15%, properties Fossil-free district heating, properties

Varma’s climate targets Listed equities and corporate bonds 2035 50% emissions reduction by 2027 (listed equities, corporate bonds) Thermal coal investments Oil exploration Index funds Low-carbon funds to account for 35% by 2025 Carbon-neutral Private equity funds investment portfolio Renewables to account for 50% of electricity generation investments by 2030 2035 Real estate investments Climate allocation 20% of Fossil-free electricity by 2025 the portfolio by 2025 Fossil-free heating by 2030 With the exception of small-scale (5%) balancing power.

Working for future generations.