Varma Partners with Nordea to Launch €400 Million Climate-Focused ETF

Finnish pension fund Varma Mutual Pension Insurance Company has partnered with Nordea Asset Management to invest about €400 million in a custom-built active ETF targeting European companies.

The new fund, named Nordea ETF ICAV – BetaPlus Enhanced European Select Equity UCITS, blends active management, broad diversification, and strong sustainability objectives.

A New Active ETF Aligned with Climate Ambitions

The initiative reflects the shared commitment of both organizations to lower portfolio-level greenhouse gas exposure and increase investment in companies with Science Based Targets initiative (SBTi)-aligned decarbonization plans. Varma is among the very few pension companies worldwide to have its climate targets validated by the SBTi, positioning it as a leader in sustainable investment practices.

The ETF will focus on European firms included in the MSCI ACWI Select Climate 500 Index. Its goal is to outperform the index over the long term while keeping risk levels low. Unlike traditional passive ETFs, this product integrates active management components designed to adapt to market conditions and evolving investment opportunities.

Strengthening Varma’s ESG Strategy and Market Position

“We invested in this ETF because its active management component allows for a prudent level of risk taking, and our goal is to outperform the index,” explained Timo Sallinen, Head of Listed Investments at Varma.

For the pension fund, the investment marks a strategic advancement in diversifying its European equity exposure while staying aligned with its long-term climate goals. Nordea Asset Management will oversee the fund’s operations, combining the liquidity and transparency typical of listed ETFs with enhanced portfolio flexibility.

Through this collaboration, Varma reinforces its role as an institutional investor strongly committed to the climate transition and the integration of ESG criteria. The initiative underscores sustainability as a central pillar of Varma’s financial decision-making and strengthens its leadership in responsible investment across Europe.

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