Varma invests in a responsible manner
Varma’s Principles for Responsible Investment cover the company’s investment assets in their entirety. Each investment decision involves the identification and assessment of various responsibility factors.
Responsible investment provides a framework for incorporating environmental, social and corporate governance criteria into investment operations and ownership policies. Factors relating to responsibility have an impact on companies’ value and place requirements on both businesses and investors. In addition to the financial aspect, investors nowadays must assess potential investments from a broader perspective.
Varma published its Principles for Responsible Investment and asset-specific policies in March 2014. The Principles for Responsible Investment cover Varma’s investment assets in their entirety. They provide general guidelines, which are applied differently for different asset classes, depending on their characteristics.
Varma invests in a responsible manner. The ultimate goal of our investment activities is the sustained accumulation of pension assets. However, each investment decision involves the identification and assessment of various responsibility factors. Varma strives to incorporate responsibility systematically in all its investment operations. When making assessments, we take into consideration:
- the UN Global Compact initiative on corporate responsibility
- the OECD guidelines for multinational enterprises
- the ILO labour conventions
The UN Principles for Responsible Investment
Varma has also signed the UN Principles for Responsible Investment (PRI) and published a report for 2013 in accordance with the UN-supported Principles of Responsible Investment.
The UN-supported Principles for Responsible Investment (PRI) Initiative is an international network of investors whose objective is to incorporate environmental, social and governance issues into investment decision-making processes and ownership practices.
Varma’s approach is to avoid double taxation on investment returns
For ethical reasons Varma excludes companies that concentrate on the manufacture of tobacco and nuclear weapons from its direct investments.
Varma acts lawfully and with integrity and in compliance with legal and regulatory requirements. Varma will not enter into transactions with the main purpose of securing a tax advantage contrary to the intention of the legislator in enacting the relevant tax legislation. Varma's principle is to avoid double taxation on its investment returns; double taxation would contradict the ultimate objective of the investment operations, which is to generate returns.