Varma transitions to voluntary sustainability reporting
Pension company Varma is no longer subject to mandatory sustainability reporting obligations. The company has decided to adopt voluntary reporting aligned with simplified ESRS standards.
Finnish pension company Varma will transition to voluntary sustainability reporting, shifting away from mandatory disclosure requirements. This change follows a Finnish government proposal to amend the Accounting Act and Auditing Act in line with the EU Omnibus I Directive, which sets new thresholds for mandatory reporting.
The amended legislation will require companies with a turnover exceeding EUR 450 million and more than 1,000 employees to report on sustainability. Varma no longer meets these criteria. Consequently, the company has opted to voluntarily adhere to the simplified European Sustainability Reporting Standards (ESRS), supplementing the disclosures with topics material to its sector and operations.
Hanna Kaskela, Senior Vice President of Sustainability at Varma, stated that the move supports the company's strategic ambition to lead in sustainability. "Voluntary application allows us to communicate our sustainability work more clearly and with a stronger focus on Varma’s core operations," she said. Kaskela added that this approach enables more effective resource allocation towards sustainability initiatives.
Varma plans to publish its first voluntary sustainability report under the simplified standards in early 2027, covering the current financial year. The company will continue to utilize double materiality assessments in its reporting.