Climate change is one of the most significant global threats of our time. The impacts of climate change extend to investments. For investors, climate change presents both risks and opportunities.
Our goal is to select and influence our investments so as to advance the prevention of climate change.
Our long-term goal is for our investments to be in line with the Paris Agreement. The objective of the Paris Agreement is to endeavour to keep the increase in global temperature well below 2 degrees Celsius above pre industrial levels and to pursue efforts to restrict the warming to below 1.5 degrees.
The purpose of this document is to outline the measures that Veritas Pension Insurance is taking to manage climate risks. These measures include:
• The analysis, monitoring and reporting of carbon risk
• The assessment, monitoring and reporting of the economic impacts of climate change
• Exerting influence on investments as a means of tackling climate change.
The Board of Directors of Veritas approves the Investment-related climate policy on an annual basis. The Sustainability Manager is responsible for updating and drafting the policy, and the investment team for their implementation in the investment activities.
Analysis, monitoring and reporting of carbon risk
We monitor the carbon intensity of our investments, and our long-term objective is to ensure that our investment portfolio is in line with the Paris Agreement. Our goal is to reduce the carbon intensity of our portfolio and to increase our share of low-carbon investments.
We strive to develop our portfolio to be carbon neutral by 2035, to the extent possible within our investment environment. In order to achieve our climate targets, we have set interim milestones for listed equity and corporate bond investments and direct real estate investments in our climate roadmap.
Assessment, monitoring and reporting of the economic impacts of climate change
We continuously develop our analyses and reporting on climate risks and opportunities. We endeavour to understand the economic impacts of climate change, such as physical risks and transition risks, as they relate to our investment portfolio, and we assess our investment portfolio using different scenarios. We report on climate risks annually as part of our sustainability report.
Exerting influence on investments as a means of tackling climate change
We strive to exert influence on our investments as a means of tackling climate change and advancing the shift towards a low-carbon economy. We encourage our investments to report climate risks and opportunities in accordance with e.g. the TCFD (Task Force on Climate-related Financial Disclosures) reporting framework. We prefer to engage with investee companies to inspire change rather than exclude them.
Objectives by asset class
Direct equity and fixed-income investments
We communicate with our portfolio companies regarding the essential risks and opportunities of climate change for each company. We examine the possible climate change-related risks and opportunities as part of our normal company analysis work.
We encourage our investee companies to report on climate risks — including physical and transition risks that may affect their business, strategy, and assets — in accordance with internationally recognized frameworks such as the TCFD, or applicable legislation.
We endeavour to favour Green Bonds as far as possible.
Investment funds
When selecting investment funds, we assess the funds in terms of responsibility issues, and climate change assessment plays an important role in this process. In terms of the responsibility rating of the funds, we consider the written guidelines of fund managers and the amount and quality of reporting, as well as considering the risks and opportunities inherent in the selection of investments.
Our goal is for all funds in which we invest to take climate change factors into account either in a separate climate policy or as part of their overall responsibility policy. Furthermore, their responsibility policy must be integrated into their decision-making processes. Within our investment portfolio, we strive to increase the share of investment funds that take climate perspectives into account in their investment decisions.
Real estate
Our goal is to improve the energy efficiency and environmental friendliness of buildings. We have joined the Energy Efficiency Agreement for the real estate sector as a means of demonstrating our commitment to the responsible use of energy. By joining this voluntary agreement, we are committed to improving the use of energy in accordance with the goals presented in the action plan.
We are actively working to reduce our carbon footprint. Our goal is for all of the real estate we own to be carbon neutral by 2030. We have undertaken to make significant energy investments as a means of reaching our goal of carbon neutrality.
The carbon footprint consists mainly of carbon dioxide emissions from heating and cooling of properties, as well as electricity and water consumption. We aim to ensure that the electricity, cooling and heating purchased by Veritas come from renewable energy sources. We conduct regular energy assessments for the properties we own and make use of environmental certifications such as BREEAM.
Approval of the Investment-related Climate Policy
The Board of Directors of Veritas Pension Insurance approves the Investment-related Climate Policy on an annual basis. The Investment-related Climate Policy was approved by Veritas Board of Directors on 16 December 2025.