We report on sustainability topics in accordance with the EU’s Corporate Sustainability Reporting Directive (CSRD), which entered into force this year. Varma is part of the first wave of reporting, which includes companies with over 500 employees. In the coming years, reporting will expand to smaller companies.
Sustainability reporting is based on a double materiality assessment
Our sustainability reporting is based on a double materiality assessment carried out in 2023, in which we defined the sustainability topics that are material to Varma and the associated impacts, risks and opportunities.
"As an investor, we have focused on material sustainability issues in different sectors for a long time when assessing the sustainability of our investments. We use industry-specific standards like SASB for the assessment, as the material topics vary significantly between different industries. For example, environmental responsibility and safety matters are material to a mining company, while in the case of a construction company, not only safety, but also the material from which the buildings are made and how they are heated is material," says Hanna Kaskela, Senior Vice President, Sustainability & Communications.
The climate and human rights impacts of investments and, on the other hand, the systemic risks relating to climate change and biodiversity loss, as well as risks of human rights violations or violations of good governance were emphasised among Varma's material sustainability topics.
The realisation of our customers’ rights, securing their livelihoods and topics related to responsible business practices emerged as essential topics in Varma's own operations. Influencing the climate impacts of our own operations and seeing to our employees’ working conditions and equality were identified as equally material.
In direct real estate investments, the environmental impacts relating to climate change and resource efficiency as well as the safety aspects of employees and tenants in the value chain are particularly significant sustainability topics. In addition to the climate impacts of purchased products and services, corporate culture and supplier relationships are material sustainability topics for Varma.
"We will update our materiality assessment in the coming years as sector standards are published or otherwise when necessary," says Hanna Kaskela.
"We will update our materiality assessment in the coming years as sector standards are published or otherwise when necessary," says Hanna Kaskela.
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Double materiality assessment at Varma
In the PDF, we explain the concept of double materiality and the stages of the assessment, the methods used and the sustainability topics identified as material.