Temperature records, extreme weather phenomena and the substantial loss of nature all point in the same direction: The planet is under pressure. As a pension company – which is also one of Europe’s largest – we work every day to create the best possible frameworks for our customers’ lives here and now, and when they retire. That is why the fight against climate change is important to us. We put our ambitions into action by investing significantly in green solutions and pushing for responsible development in the companies in which we invest. As part of our commitment to the green transition, we must contribute to the financial security of our customers through long-term and competitive returns and at the same time work to minimise risks and mitigate the worst impacts of climate change and the biodiversity crisis for people, animals and nature.
Ambitions
Net-zero CO2 emissions from total investments by 2050. 29 % reduction by 2025.1
Net-zero CO2 emissions from PFA Climate Plus products by 2025 and CO2 negative by 2030.
Climate targets approved by the Science Based Targets initiative (SBTi) by 2026.2
Climate dialogue with at least 50 of the largest emitters of greenhouse gases in the portfolio by 2025.3
1 The ambition is based on the recommendations of the Net-Zero Asset Owner Alliance (NZAOA) with 2019 as the baseline year. 2 PFA joined Science Based Targets initiative (SBTi) in February 2024. 3Including dialogue about joining the Science Based Targets Initiative.
The green transition requires capital. Therefore, PFA has made significant investments in offshore wind farms, solar cells and innovative construction such as the TRÆ project in Aarhus. We have also invested in green bonds, forests and companies that focus on recycling and circular economy. And we are committed to reducing the environmental and climate footprint of our property portfolio, which is one of the largest in Denmark. While doing so, our investments also contribute to the financial security of Danes through long-term and competitive returns.
Link to film (in Danish) about the TRÆ project
PFA uses its equity interest, network and expertise when we push for responsible development in companies in which we invest. This is done through dialogue, active participation and voting at general meetings of some of the world’s largest companies. With assets of approximately DKK 600 billion under management and strong partnerships with like-minded investors, we actively engage in accelerating the green transition.
This includes participation in two international investor initiatives, Climate Action 100+ and Nature Action 100. We do not rule out divestments and exclusions if the opportunities for dialogue have been exhausted and the risks involved in the investment are considered too high, or if the companies violate our policy for responsible investments and active ownership. However, transformation of the most carbon intensive companies is crucial if, as a society, we are to succeed with the green transition and achieve the ambitious goals of the Paris Agreement.
PFA works systematically to reduce the CO2 footprint of our investments, and we have set clear goals for how fast we should do so. In fact, we have already exceeded our 2025 CO2 reduction target to reduce our emissions by 29 per cent compared to 2019. The ambition aligns with the recommendations of the Net-Zero Asset Owner Alliance, and we have joined the Science Based Target Initiative. We are committed to creating the best possible return for our customers while working to reduce greenhouse gas emissions. So far, the reduction has largely been achieved by adjusting and optimising our portfolio, for example through divestment of companies, where we have assessed that our initiatives as an active company could not move the companies. Divestment can make the individual portfolio greener, but does not solve the global challenges. Companies in which PFA invests must reduce greenhouse gas emissions across sectors in order for it to have an impact on the real economy and the world around us. That is why PFA is working to get companies to commit to transition and ensure real progress.
PFA takes the loss of biodiversity and ecosystems worldwide seriously. We want to create good returns for our customers in a responsible manner and at the same time take the protection of nature and biodiversity into account in our investments. We believe that a lack of consideration for biodiversity can harm companies’ long-term value creation, which is why risks related to biodiversity loss are also investment risks.
We believe that companies that show consideration for their surroundings and contribute to finding solutions to some of the world’s problems will do better than companies that do the opposite. Therefore, we continuously screen the companies in which we invest, including for violations of international standards, and we carry out a number of analyses based on climate, environment and nature as well as the companies’ governance and efforts to comply with international laws and conventions. The better we take these factors into account – also called ESG factors – in our investments, the better opportunities we have to generate good long-term returns for our customers.
While PFA has a strong focus on the green transition and ESG factors in our general pension products in PFA Plus, our customers with market rate products also have the opportunity to choose and place their savings in PFA Climate Plus. Overall, Climate Plus investments emit 60 percent less CO2 on average than the world equity index, and we have made a decision not to invest in the oil, coal and gas sectors. By 2025, the ambition is for all PFA Climate Plus products to be CO2 neutral, and by 2030, they are to be CO2 negative. For PFA Climate Plus, we also have a strong focus on ensuring that investments in the green transition go hand in hand with financial security and attractive long-term returns. However, we also know that the narrower investment universe focusing on the green transition can result in greater fluctuations in returns when, for example, geopolitical developments occur, interest rates rise, etc. This allows for both higher and lower returns for some periods compared to the broader PFA Plus products.
PFA prioritises participating in councils and networks to exchange knowledge about corporate responsibility and focus on the green transition. Besides informal dialogues with different actors and stakeholders, we also got involved in the following:
Member of the Carbon Disclosure Project – CDP
Participating in Climate Action 100+
Participating in Nature Action 100
Member of Dansif
Member of the Danish Chamber of Commerce’s CSR network
Member of Insurance & Pension Denmark’s SRI working group
Member of the Global Real Estate Sustainability Benchmark – GRESB Infrastructure
Member of the Green Building Council Denmark
Member of the Nordic Engagement Cooperation
Member of the Ocean Plastic Forum
Signatory of ‘Moving together on nature’
Signatory of the Principles for Responsible Investment – PRI
Support for the PRI Advance Initiative
Participating in the finance sector’s climate partnership
Member of The Institutional Investors Group on Climate Change – IIGCC
Member of the UN Global Compact
Member of the United Nations-convened Net-Zero Asset Owner Alliance
Commitment to the Science Based Targets Initiative (SBTi)
Support for the Science Based Targets Campaign – CDP
