The pension insurance firm Varma has invested EUR 300 million in a Japanese focused ETF. The fund invests in approximately 100 large and mid-sized Japanese companies, with sustainability criteria alongside liquidity driving investment selection.

Among the investees are the pharmaceutical company Takeda, the world’s leading manufacturer of heat pumps, Daikin Industries, the conglomerate Hitachi, the automotive manufacturer Toyota and the video game company Nintendo.

Timo Sallinen, head of listed securities at Varma, commented “We wanted to make an ESG investment that takes sustainability aspects into account also in the Japanese market. This is a systematic continuation of our ESG investments tailored to the US, European and emerging markets. The number of exchange-traded ESG funds in Japan is still rather low”

Mr Sallinen continued “The investees selected for the fund are low-emission industries whose growth prospects we believe in also in the long run. In addition, within each industry, the companies that operate the most responsibly were selected”