Stockholm (NordSIP) – On November 5th, Varma announced an investment of €500 million in Japanese low-emission companies via a new, exchange-traded fund (ETF) tailored to Varma. The new ETF investment was listed on the Tokyo Stock Exchange on December 3, 2024.
This is not the first time that Varma partners with Nomura Asset Management. In April 2022, the finish pension company announced a €300 million investment in Japanese companies through Nomura Asset Management’s NEXT FUNDS Solactive Japan ESG Core Index ETF.
This latest investment was conducted in the NEXT FUNDS MSCI Global Climate 500 Japan Selection Index ETF and it tracks the MSCI Global Climate 500 Japan Selection Index (Total Return). It is managed by Japanese asset management firm Nomura Asset Management and will invest in Japanese companies that have set science-based (SBT) emission reduction targets and are actively working to reduce their carbon dioxide emissions.
This investment is best understood in the context of Varma’s climate targets. According to the Finnish asset owner, it has committed to increasing the share of companies that have set SBT targets in listed equity and fixed income and real estate funds to 51% by 2027. The vast majority of Varma’s emissions are caused by the emissions of investees outside Varma’s own operations. By investing in companies that are making progress in reducing their carbon footprint and promoting low-emission initiatives, investors can support global efforts to combat climate change.
“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 countriesAt Varma, we will continue to develop new ETF products that take sustainability aspects into account. Nomura is one of our key partners,” says Timo Sallinen, Varma’s Head of Listed Securities.
