Sustainability governance

The oversight responsibility for sustainability at Varma is excercised by Varma’s Board of Directors. The Board decides on the principles and policies related to sustainability, as well as on the sustainability programmes to support the strategy. The Board approves and addresses the guiding principles and policies of sustainability, and the sustainability programme.

Varma’s Executive Group addresses and approves the high-level sustainability targets annually. The Executive Group also discusses all major projects and decisions relating to the development of sustainability. The sustainability goals set for Varma’s functions are approved as part of the function’s goals or separately by the function’s executive group.

The Investment Committee addresses and approves the responsible investment principles and policies that are presented to the Board of Directors. The committee also monitors the investment risks related to responsibility, such as climate change related risks, and also evaluates violations of international agreements and norms.

The Sustainability department defines the high-level sustainability objectives and develops and coordinates Varma’s responsibility in investments, acquisitions and in Varma’s own operations. The department works in cooperation with the sustainability coordinators of Varma’s various functions, developing sustainability in accordance with external requirements and the sustainability programme. The functions are responsible for implementing sustainability.

The department prepares sustainability principles and policies, as well as the sustainability programme that describes them in more detail, and the goals, annual plans and roadmaps related to the programme. The department is also responsible for the implementation and resourcing of separately decided sustainability projects, as well as for sustainability-related internal reporting and the compliance of external communication and reporting. Varma’s various functions are mainly responsible for the implementation, such as securing the resources needed for development projects and seeing the projects through to completion.

The Board of Directors is briefed on the current sustainability outlook once a year and on the sustainability of investments ten times a year. Sustainability matters are also reported to the Board as part of Varma’s interim reports. The Board’s Audit Committee addresses sustainability risks, such as the financial risks related to climate change, in a risk and solvency assessment.

The progress of sustainability objectives is reported to the Executive Group twice a year, and responsibility and sustainability issues are reported on monthly in management reports.

The Sustainability department is responsible for internal reporting on sustainability and for the compliance of external reporting.