Varma has analysed the carbon footprint of its investments, specifically its listed equity and corporate bond investments, and its real estate investments. The calculation covers EUR 16 billion, i.e. 39% of Varma’s EUR 41.3 billion investment portfolio, and reflects the situation at the end of 2015.

1. Carbon footprint of Varma’s listed equity investments
Varma’s carbon footprint | 23.5.20161 (3)
• The carbon footprint covers both direct greenhouse gas
emissions from sources owned or controlled by the
companies (scope 1), and indirect emissions from the
generation of mostly purchased energy (scope 2).
• Varma’s carbon footprint includes both direct listed
equity investments and some index-linked equities.
• The carbon footprint and the key figures based on it
have been calculated on the basis of Varma’s holdings.
• The carbon intensity of the investments is based on the
companies’ weight in equity investments. The figure is
calculated by adding up the carbon intensity
(emissions/revenue) of the companies in the portfolio,
and multiplying it by the company’s weight in
investments.
• The figures were calculated by the Swiss South Pole
Group.
Varma’s listed equities Varma Benchma
rk index
Difference
Market value (EUR bn) 10.8
Carbon footprint (tCO2e) 1,810,908 2,648,391 -837,482
Share of disclosing companies (in
relation to capital)
85% 83%
Carbon footprint in relation to
revenue (financed tCO2e/€ mill.
financed revenue)
237 324 -27%
Carbon footprint in relation to
invested capital (tCO2e/€ mill.
invested)
168 246 -32%
Carbon intensity (weighted
emissions tCO2e/€ mill. weighted
revenue)
163 188 -13%

2. Carbon footprint of Varma’s listed corporate bond investments
• The calculation covers direct listed corporate bond
investments, some index-linked corporate bonds and
some unlisted corporate bonds.
• The carbon footprint covers both direct greenhouse gas
emissions from sources owned or controlled by the
companies (scope 1), and indirect emissions from the
generation of mostly purchased energy (scope 2).
• The calculation is an approximation, as there is no
standard concerning the criteria for the allocation of
emissions and the definition of debt.
• In Varma’s carbon footprint calculation, the corporate
bond owned by Varma is proportioned to the company’s
overall debt, and the emissions are allocated to Varma on
the basis of this proportion.
• The carbon footprint figures are high in relation to
equities, since the companies’ overall debt is usually
smaller than the market value of the equities.
Varma’s carbon footprint | 23.5.20162 (3)
Varma’s listed corporate bonds Varma Benchmark
index
Differenc
e
Market value (EUR bn) 3.0
Carbon footprint (tCO2e) 2,576,104 3,363,833 -787,729
Share of disclosing companies (in
relation to capital)
86% 72%
Carbon footprint in relation to
revenue (financed tCO2e/€ mill.
financed revenue)
244 446 -45%
Carbon footprint in relation to
invested capital (tCO2e/€ mill.
invested)
865 1,129 -23%
Carbon intensity (weighted
emissions tCO2e/€ mill. weighted
revenue)
171 333 -49%

3. Carbon footprint of Varma’s direct real estate investments
Varma’s carbon footprint | 23.5.20163 (3)
Varma’s direct real estate investments Varma
Market value of the real estate portfolio included in the calculation (EUR bn) 2.2
Flats’ share of the market value 29%
Business premises’ share of the market value 71%
Share of the market value of the sites included in the calculation of the entire direct real estate
portfolio
66%
Carbon footprint (tCO2) 58,050
Flats’ share of the carbon footprint 18%
Business premises’ share of the carbon footprint 82%
Carbon footprint in relation to gross square metres (CO2 kg/gross m2) 33.8
Carbon footprint of flats in relation to gross square metres (CO2 kg/gross m2) 27.2
Carbon footprint of business premises in relation to gross square metres (CO2 kg/gross m2) 35.6