Varma assessed how prepared its investees are to mitigate biodiversity loss – water emerged as a central theme in companies’ nature strategies

Varma looked into how prepared its investees are to maintain biodiversity. Approximately every sixth company had an action plan for mitigating biodiversity loss.

The proportion of companies that have a plan was higher than in the two previous survey years. Company policies concerning sustainable management and use of water resources have become increasingly common. The policies set by companies have also become more detailed and comprehensive compared to earlier years.

“Responsible use of water resources is closely linked to the protection of ecosystems. Drying rivers don’t just mean less water – they also signify a loss of life, including the animal species, insects and organisms vital to the ecosystem. The importance of managing water resources is growing, with Europe suffering from drought and heat in the summer,” says Hanna Kaskela, Senior Vice President, Sustainability & Communications at Varma.

Companies’ commitments to managing water resources involve plans to protect marine waters, reduce the water footprint, reduce water consumption or improve the processing of wastewater.

Close to half of companies made progress in accounting for biodiversity

The survey focused on our listed equity investments and companies in exchange-traded funds, or ETFs. The survey included companies that have a market value of over a million euros. The survey included 204 companies.

A third of the companies (32 per cent) had set targets related to mitigating biodiversity loss, but lacked a concrete plan for achieving the targets.

Close to half of the companies (45 per cent) had made progress over the past three years in accounting for biodiversity. Oil and gas companies stood out as a sector that showed a commitment to setting targets.

“Taking biodiversity into consideration is crucial for maintaining the companies’ operating conditions. Companies that invest in the sustainable use of resources and seek solutions for maintaining ecosystems increase the flexibility of their businesses and guarantee their competitiveness in the future,” Kaskela says.

One in eight companies (12 per cent) had not considered biodiversity issues in their public policies at all.

Biodiversity is an integral part of Varma’s environmental policy

The survey is a continuation of Varma’s biodiversity work and was conducted for the third time. Varma is committed to common agreements to end biodiversity loss and put nature back on a path to recovery by 2030. Biodiversity is an integral part of Varma’s environmental policy.

We are also part of the Nature Action 100 investor initiative, which drives greater corporate ambition and action on tackling biodiversity loss. Participating investors focus on mobilising companies deemed to be systemically important to accounting for biodiversity and reversing biodiversity loss.

In Varma’s survey, the companies’ biodiversity policies were divided into four categories: (0) no mention of the topic, (1) statement of intent to take action, (2) commitment and detailed targets for taking biodiversity into account and (3) a detailed implementation plan to fulfil the commitment.

The material was collected from publicly available sources, including companies’ annual and sustainability reports, websites and the biodiversity policies drawn up by the companies for their operations.

Additional information: 

Hanna Kaskela, Senior Vice President, Sustainability & Communications, tel. +358 40 584 5045 or hanna.kaskela(at)varma.fi 
 

Marjut Tervola, Communications Manager, tel. +358 45 673 0120 or marjut.tervola(at)varma.fi