This includes green government bonds and green mortgage bonds. These are bonds governed by clearly defined requirements and criteria that specify that the proceeds from the bonds must be directed towards the financing or refinancing of investments, projects, expenses or assets that have a documented positive impact on the environment or the climate.

Proceeds from green bonds can be used to finance solutions such as renewable energy projects, pollution prevention and control measures, low-carbon transportation and housing, climate-adaptation strategies, energy efficiency improvements, and waste and wastewater management solutions.

In order to be categorised as an investment in the green transition, the bonds must be classified in accordance with the recognised market standard Green Bonds Principles from the International Capital Market Association. This means that the bond issuer must document and report that the financed projects and activities have a positive environmental or climate impact and are carried out in adherence to good governance practices.  

Examples of investments
We have invested in green government bonds issued by countries including Denmark, Spain, Germany and the Netherlands. We also invest in green bonds issued by development banks, such as German KFW and the World Bank, which grant loans to developing countries, with national states backing the bonds. 

The proceeds raised by these types of bonds are used to improve the climate or environmental footprint of countries, which can be achieved by developing solar and wind energy capabilities, reducing carbon emissions from public transportation, climate-proofing towns and cities and improving the energy efficiency of buildings.

We also invest in green mortgage bonds issued by mortgage credit institutions. Funds raised by such investments are used to finance low-climate-footprint properties, energy-efficiency improvements for properties, and wind farms.

This includes investments in Danish properties that are aligned with the EU Taxonomy. We carry out an overall assessment and analysis of each property, and the total market value of the property in question counts towards an investment in the green transition if the property is aligned with the EU Taxonomy.

This means that properties are included in the total amount of investments in the green transition when they mitigate climate change by being energy efficient. Energy efficiency is assessed on the basis of the properties’ energy performance certification and automated energy management. At the same time, we assess how vulnerable the properties are to climate-related risks, such as cloudbursts and storms. 

If a property is deemed to be exposed to such risks, climate-proofing solutions must have been implemented. An example of a climate-proofing solution includes pump systems and drains that prevent flooding of an underground parking area in the basement of a property. Another example is green spaces around buildings that slow down rainwater run-off so that underground drainage systems do not become overloaded during cloudbursts. 

Examples of investments
We have invested in the ERDA II housing project in Aarhus, which is a property consisting of 121 rental apartments. This property has living green roofs that provide insulation in the summer and delay rainwater from entering underground drainage systems. Together with the green roofs, rooftop solar panels have been installed to improve the energy efficiency of the property. A large attenuation basin has also been established beside the property to collect and delay rainwater and act as a recreational element for local residents.

This covers investments in projects or companies that are not publicly listed and that we typically invest in through investment funds or together with investment funds. This can be investments in renewable energy infrastructure projects such as wind farms, solar farms and hydroelectric power facilities. It can also include investments related to battery technology or solutions for wastewater treatment, clean drinking water or carbon reductions from the transportation sector.

Only the proportion of the individual investment that complies with the EU Taxonomy Regulation is categorised as an investment in the green transition. 

Examples of investments
We have invested in the German offshore wind farm Borkum Riffgrund 3, which is expected to begin operations in 2025. With a capacity of 900 MW, this will be one of Germany’s largest wind farms, capable of providing electricity to approximately 900,000 households. 

We have also invested in the Swedish company Northvolt, a global leader in the development and production of batteries for electric vehicles. Northvolt supplies batteries for VW and BMW, supporting these manufacturers in their ambitions to replace fossil-powered cars with electric vehicles.

This includes investment in many different types of companies around the world that through their activities have a positive impact on environmental- and climate-related aspects. These are investments in corporate shares and corporate bonds. Only businesses activities that are classified as environmentally sustainable in alignment with the EU Taxonomy are included as investments in the green transition. 

Examples of investments
We have invested in companies including Vestas, Ørsted, Iberdrola, National Grid and Terna, all of which are involved in producing wind turbines or producing and distributing renewable energy. 

We have also invested in companies such as Schneider Electric and Siemens Energy. These companies are helping a wide range of industries to reduce their carbon emissions by providing climate technologies in areas such as food production, shipping, transportation, construction and infrastructure.