Finnish earnings-related pension provider Varma is on track to be carbon-free in heating and electricity across all its real estate investment properties by 2030, as it has now achieved this status in its residential properties.

This achievement means that Varma has taken a step forward in achieving its climate targets. Varma has around 4,600 investment homes across the country, concentrated in major cities.

Significant emission reductions have been achieved through energy upgrades to the properties, such as geothermal projects and renewable district heating.

“This year, Varma's homes will be heated either by geothermal heat produced on site or by district heating of original quality, produced from renewable energy sources or waste heat. This is an important step towards achieving our climate targets," Varma asset manager, Riina Komulainen, explained.

District heat produced from carbon dioxide-free heat sources has already been used in Varma's housing projects in Espoo, Tampere, Turku and Jyväskylä, among others. Now, original, CO2-free district heating has also been selected for properties in Helsinki and Vantaa.

To date, Varma has reduced the C02 emissions from the energy consumption of its managed real estate investments to less than half of the 2015 level. Varma’s goal is that the heat it buys for its properties during operation will be CO2-free in both residential and commercial properties by 2030.

“For our housing investments, we are already on track to reach our target this early for 2025. Varma has been sourcing wind-generated electricity for its housing investment projects for a long time, but this year not only the electricity we buy, but also the heat is produced CO2-free," Varma's housing investment manager, Sarianna Sipola, said.

“We have set ambitious targets, and we are actively working to achieve them. Our work continues," Sipola added.

In addition to the switch to CO2-free district heating and electricity, the reduction in emissions from Varma's properties is also due to energy renovations and efficiency measures. In the past six years, energy renovations have been carried out in 22 residential properties still owned by Varma.

Geothermal heat pumps, exhaust air heat pumps and solar panels have been installed in residential properties. Other energy efficiency and production measures have also been taken, such as upgrading building automation systems and implementing facilities for charging electric cars.

“The annual CO2 emission reductions from the energy renovations are estimated to have been around 1,500 tonnes of emissions (tkg) when combined with other measures. Playfully calculated, this is estimated to be equivalent to the annual carbon footprint of, for example, about 150 average Finns,” Komulainen said.

Varma's real estate investments are guided by its 2023 ESG Roadmap for Direct Real Estate Investments. However, the sustainability of real estate investments has been under development for several years.

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