Danica Pension scales up ambition: Green transition investments to reach DKK 50 billion by 2023

Danica Pension is bringing its deadline for green transition investments forward by two years, which means the ambition now is to have invested at least DKK 50 billion in the green transition as early as 2023. If this is accomplished, Danica Pension’s investments in the green transition will have increased fivefold in four years.

Danica Pension is now scaling up the climate ambitions still further by bringing the deadline for investments in the green transition forward by two years. Danica Pension takes this step due to having already achieved the existing 2023 target of DKK 30 billion. As a result, Danica Pension’s new ambition is to have invested at least DKK 50 billion in the green transition by 2023. Investments in the green transition comprise investments in companies, funds or projects that contribute to reaching the global climate goals. This is an important step towards achieving the long-term target of investing at least DKK 100 billion in the green transition by 2030 and securing carbon neutral investments by 2050 .

“Action is needed here and now if we are to slow down climate change before it is too late. That is why we are now raising our ambitions in the short term.“Poul Kobberup, CIO, Danica Pension

“Action is needed here and now if we are to slow down climate change before it is too late. That is why we are now raising our ambitions in the short term . We have shown our determination to walk the talk, because since 2019, we have more than tripled our investments in the green transition to the current level of DKK 32.9 billion. We have done this while generating some of the highest net returns in the market for our customers,” says Poul Kobberup, Chief Investment Officer of Danica Pension.


Strong momentum

The new target builds on the strategy to combine climate action with attractive returns, and according to Poul Kobberup, the market for green investment options will mature even more over the coming years and make it possible to meet the new 2023 ambition.

“We have seen a strong momentum in recent years, during which we have invested approximately DKK 17 billion in green bonds and more than DKK 800 million in Swedish Northvolt, a manufacturer of batteries for electric vehicles. Stricter climate regulation and a growing demand for green solutions are going to make more companies shift towards greener alternatives, and the latest energy crisis also reinforces the need to expand renewable energy. These shifts and trends are expected to offer us attractive investment opportunities, so I am convinced that we can deliver on our new climate targets while also generating attractive returns for our customers,” says Poul Kobberup.


Will revisit climate targets

Interim targets are important as they set the direction for investments, enabling Danica Pension to deliver on its long-term target of having at least DKK 100 billion invested in the green transition by 2030. The EU is defining what can be categorised as green activities in the context of the EU Action Plan for Sustainable Finance. As the EU green taxonomy is extended and the data quality improves, Danica Pension will revisit its ambitious targets for investment in the green transition.

“The climate crisis is not waiting for us, and we need to act now and set interim targets based on the data and knowledge we have today. That is why we have set a new and even more ambitious 2023 target.“Poul Kobberup

“The climate crisis is not waiting for us, and we need to act now and set interim targets based on the data and knowledge we have today. That is why we have set a new and even more ambitious 2023 target . Over time, we will make the transition to complying with the EU taxonomy and its definitions of green activities when setting future targets,” Poul Kobberup concludes.


Photo: Chief Investment Officer of Danica Pension

 

    Facts:

  • Danica Pension brings the deadline for meeting the 2025 target for investments in the green transition forward by two years and will, accordingly, pursue the target of having at least DKK 50 billion invested in green activities and projects as early as 2023.

  • Previously, the target was investments of DKK 30 billion by 2023, but this was already achieved in the summer of 2021. Today, Danica Pension has invested DKK 32.9 billion in the green transition, which means its investments have more than tripled since 2019, when approximately DKK 10 billion was targeted at the green transition.

  • Danica Pension’s investments in the green transition are verified by Deloitte every year and include investments in companies with activities in renewable energy, alternative investments in renewable energy, certified sustainable properties and green bonds.

  • Danica Pension will reassess the targets for investments in the green transition when more clarity is available about the EU taxonomy and its definitions of green activities.

  • Danica Pension has signed up to the UN-convened Net-Zero Asset Owner Alliance and has thus committed to making its investments carbon neutral by 2050 in alignment with the goal of the Paris Agreement to limit the global rise in temperature to 1.5oC. In March 2021, as part of this ambition, Danica Pension set interim targets for reducing carbon emissions from the energy, utilities, transport, cement and steel sectors by 2025.

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