Finland's Varma has confirmed it will shift to voluntary sustainability reporting after falling outside the scope of the country’s revised environmental, social and governance (ESG) disclosure requirements.
In line with the European Union’s Omnibus I negotiations, the Finnish government submitted a proposal to parliament in March to amend the Accounting Act and Auditing Act.
Going forward, compulsory sustainability reporting will only apply to companies with a turnover of more than €450m and more than 1,000 employees. Although Varma’s turnover exceeds this figure, it has fewer than 1,000 employees and is therefore exempt.
The amendment is expected to enter into force on 30 June 2026, although its provisions may already be applied to financial years starting on 1 January 2026.
As a result of the changes, Varma will move to voluntary sustainability reporting, in line with the simplified European Sustainability Reporting Standards (ESRS) standards.
The pension insurance company said it would supplement its reporting with themes that are material to the pension sector and its operations. It also confirmed that it will continue to use double materiality assessments in the future.
Varma director, responsible for sustainability, Hanna Kaskela, said: “Varma’s strategy is to be a forerunner in sustainability, and we have defined our focus on meaningful sustainability actions.
“Simplified standards best support our strategy. Voluntary application allows us to communicate about sustainability more clearly and with a stronger focus on Varma’s core business. The change also enables us to allocate resources more effectively to sustainability work itself.”
