Alternatives with a sustainability focus

Sustainable alternative investments are investments in equities, loans or bonds that are typically not listed on a stock exchange and that meet the special criteria of Danica Balance Sustainable Choice. Investments may be either direct investments managed by Danica Pension’s investment team or fund investments, where an external portfolio manager appointed by Danica Pension’s investment team makes investments on Danica Pension’s behalf. Investments may be made in Denmark or internationally.

Before being accepted in Danica Balance Sustainable Choice, alternative investments undergo a special screening process, where Danica Pension’s investment team verifies that the investments support sustainability issues and are also attractive from an investment perspective.

Examples of such sustainability issues are climate, environment, health, food production or other social issues.

In terms of climate issues, alternative investments might be investments in renewable energy, such as wind turbines, solar power plants or biomass plants. They might be investments in the construction of plant to increase capacity and contribute to the shift from fossil fuels to renewable energy sources or investments in the ownership or financing of existing plant. They might also be investments in companies supporting the transition to more sustainable technologies and business models, for example the shift from fossil fuels to electric vehicles in the transport sector.

In terms of other social issues, alternative investments might be investments in micro loans, which provide financing for people in developing countries without access to the traditional financial system, allowing them to start up or develop businesses.