Supporting the green transition and generating attractive returns
Investors play a key role in the green transition. Danica Pension focuses on contributing to the transition towards a climate-friendly society through our investments, active ownership and collaboration with other investors. We continually determine, integrate and consider the significant climate-related risks and opportunities in relation to the green transition. This enables us to create financially secure pension savings and to contribute to the climate goals of the Paris Agreement.
Future-proofing investments with green focus
The green transition places new climate demands on companies. We analyse companies’ approach to climate aspects and engage with companies to help them consider climate issues. This enables us to select the best possible investments and support the green transition. We also work towards greater transparency on climate issues and support climate initiatives such as Climate Action 100+ and TCFD.
“In future, we will increase our investments in companies that deliver products and solutions for the green transition and are transforming their business towards relying more on green energy sources. As we see more attractive green investment opportunities, a larger proportion of customer savings will be invested in companies and projects with low climate impact, reducing the overall carbon impact over time. This way, we can use our customers’ pension savings to make a difference for the climate and to future-proof attractive returns for retirement life.”Danica Pension’s Chief Investment Officer, Poul Kobberup.
Investing DKK 100 billion in the green transition
In the future, a larger proportion of customer savings will be invested in the green transition. Our 2030 ambition is to have DKK 100 billion invested in companies, funds or projects that contribute to reaching the global climate goals.
Low carbon emissions from investments
In 2020, we published our first carbon footprint report showing the carbon impact of our investments in equities and corporate bonds. The report shows that the investments emit 33 tonnes of carbon per DKK million invested. This is 21% less carbon emissions than the combined global benchmark for equities and corporate bonds.
Fewer investments in carbon-intensive companies
Our lower climate impact is mainly due to the fact that we have fewer investments in companies within sectors with a high level of carbon emissions, such as energy and mining. We also have investments in companies in the utilities and automotive industries, for example, with lower carbon emissions than the sector average.
Carbon footprint report: a tool in our climate approach
We use our carbon footprint report to get a better understanding of the risks and opportunities in relation to climate conditions and the green transition. New market trends, green solution demands, stricter climate regulations and political climate ambitions will affect the companies’ business models. This will particularly affect companies with high carbon emissions, both financially and in terms of their future opportunity for growth.
The report provides us with an overview of the total carbon emissions of our investments. We use the report as a tool in our ambition to reduce the carbon impact of our investments. We can do so through active ownership, by selling off investments with high carbon emissions or by increasing investments in companies that support the green transition.
When applying the tools, we aim at generating attractive and long-term returns for our customers as well as contributing to the green transition. To truly make a difference, we believe that open and diversified dialogues with companies and other stakeholders are important in the green transition.