We believe that corporate responsibility and ESG pay off
PFA’s purpose is to give our customers the best possible financial security when they retire, lose their work capacity or become ill, and at the same time, we want to contribute to a positive societal development. We have around DKK 600 billion assets under management, and our investments therefore have a significant impact. We believe that, all else being equal, sustainable business models will generate higher returns over time and that it therefore pays to invest in companies that work professionally with corporate responsibility and sustainability.
We therefore work systematically with the so-called ESG factors, which include climate and environmental data (E – Environment), social data (Social) and governance data (Governance). This is based on e.g. the UN Global Compact’s 10 principles for what companies must live up to in relation to human rights, labour rights, environmental rights and anti-corruption. We have therefore written these principles into our ‘Policy for Responsible Investments and Active Ownership’, which is the policy that forms the basis for our commitment to ESG and responsible investments.
Active ownership and insight are the key to influence
Our work with investments and ESG factors is driven by data that we receive from either the companies themselves, independent suppliers or through our own research. We continuously screen our investments based on this data so that we can take action if companies do not comply with our policies. Our primary tools are direct dialogue with companies, voting at their general meetings and, ultimately, divestment and exclusion if we consider our options exhausted. The keyword is active ownership, as we believe that we can make a greater difference for the benefit of society by staying invested in the companies and impacting them from the inside than by divesting and leaving the seat at the negotiating table to other investors.
We comply with international frameworks and regulations
PFA’s reporting and communication on ESG takes place in accordance with the initiatives formulated under the EU’s Action Plan on Financing Sustainable Growth, including the so-called disclosure regulation. We also comply with various international guidelines and sanctions and, for example, have a thorough process to ensure that we exclude government bonds from countries that we deem are inappropriate to invest in. Finally, we have formulated our own requirements that we send to our financial partners in connection with unlisted investments as a starting point for a dialogue about our expectations for responsible business practices.
We want to be transparent about our work with responsible investments and therefore regularly publish relevant information under corporate responsibility on pfa.dk so that the outside world can follow what we do.