Temperature records, extreme weather phenomena and the large loss of nature all point in the same direction: The planet is under pressure. As a pension company we have a long term investment horizon and are concerned about the challenges that have negative consequences for society, the economy and the ability to deliver competitive risk-adjusted returns on customers’ savings.
Therefore, efforts to combat climate change, the loss of biodiversity and instability in society are important to us. We put action behind our ambitions by investing significantly in green solutions and pushing for responsible development in the companies in which we invest.
In our work with the green transition it is a given task to contribute to the financial security of our customers through competitive risk-adjusted returns while at the same time working to minimise investment risks and mitigate the worst consequences of climate change and the biodiversity crisis for people, animals and nature.
Ambitions
Net-zero CO2 emissions from total investments by 2050. 60 % reduction for listed equities and corporate bonds 20301.
51 % of PFA’s equities, corporate bonds and a subset of the alternative investments must have externally validated climate targets under the Science Based Targets initiative no later than 20302.
53 % reduction in CO2 emissions from PFA’s properties (kg CO2e per square metre) no later than 20303.
Negative CO2 emissions from PFA Climate Plus in 2030.
At least 150 companies will have been in ownership dialogue with PFA on green transition, climate and nature by 2030.
1 The ambition is set according to the recommendations of the Net-Zero Asset Owner Alliance (NZAOA) with 2019 as the baseline year for listed equities and corporate bonds. 2 Measured in relation to the value of total assets under management. 3Compared with 2023.
The green transition requires capital. At the end of 2025 PFA had invested just over DKK 100 billion in a wide range of activities which, according to various recognised methods, including the EU taxonomy and ICMA’s guidelines for green bonds, are considered to support the green transition. This includes, among other things, offshore wind farms, solar cells and innovative construction such as the TRÆ project in Aarhus. We also invest in green bonds, forests and companies that work with recycling and the circular economy. On top of that, we work in a targeted way to reduce the environmental and climate footprint in many of the investments that cannot in themselves be classified as green. Regardless of the nature of the investments, the primary purpose of our investments is to contribute to our customers’ financial security by delivering competitive risk-adjusted returns over time.
At PFA we use our equity interest, network and expertise when we push for responsible development in the companies in which we invest. This is done through dialogue, active participation and voting at the general meetings of some of the world’s largest companies. With approx. DKK 750 billion under management and strong partnerships with like-minded investors, we are actively engaged in accelerating the green transition. Our engagement takes place, among other things, through two international investor initiatives, Climate Action 100+ and Nature Action 100.
We do not rule out divestment and exclusions if the possibilities for dialogue have been exhausted and the investment risks are considered too high, or if the companies breach our policy for responsible investments and active ownership. However, transforming the most CO2-emitting companies is crucial if, as a society, we are to succeed with the green transition and limit temperature increases in line with the Paris Agreement.
At PFA we work systematically to reduce the CO2 footprint from our investments, and we have set clear targets for how quickly this must happen. We have both reduction targets, which are set in accordance with the Net-Zero Asset Owner Alliance, and climate targets, which are validated and approved by the Science Based Targets initiatives. This means that our actions follow clear recommendations from external parties.
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 efforts in the form of active ownership 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. Therefore, at PFA we work diligently to get the companies we invest in to commit to transition and ensure real progress, while at the same time we will significantly reduce emissions from our property portfolio.
PFA takes the global loss of biodiversity and ecosystems very seriously. We want to secure a good return for our customers in a responsible way while also taking nature and biodiversity protection into account in our investments. Our basis is that a lack of consideration for biodiversity may harm companies’ long-term value creation. In short, this means that loss of biodiversity constitutes an investment risk. Among other things for this reason we use nature-related data points in our investment processes, incorporate consideration for nature and circularity in our direct investments, exercise active ownership targeted at selected sectors and place the highest expectations on the companies that are most dependent on and have the greatest impact on biodiversity and ecosystems.
We believe that companies which show consideration for society as a whole and help find solutions to some of the world’s problems will perform better than companies that do the opposite. Therefore, we regularly screen the companies we invest in, for example for breaches of international norms, and we carry out a number of analyses based on climate and nature as well as the companies’ work with governance and social conditions and their compliance with international laws and conventions. The better we become at taking these factors – also called ESG factors – into account in our investments, the better our opportunities to create positive long-term returns for our customers.
At the same time as 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 option of placing their savings in PFA Climate Plus. Here the equity investments have a CO2 footprint at least 60 per cent below the global equity index, and certain sectors such as oil, coal, gas and defence are completely excluded. In 2025 we achieved net-zero CO2 emissions from PFA Climate Plus, and in 2030 it must be CO2 negative. In 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, while at the same time the narrower investment universe with a focus on the green transition may result in greater fluctuations in returns when, for example, geopolitical developments occur, interest rates rise, etc. With the same investment risk, the long-term expected return in PFA Climate Plus may be slightly lower than in PFA Plus. In practice, however, the return can be higher, the same or lower.
PFA prioritises cooperating with other investors and stakeholders on targets and actions within responsible investments and active ownership. Additionally, we participate in councils and networks to exchange knowledge on corporate responsibility and to place greater focus on the green transition. In addition to informal dialogue with various actors and stakeholders, we are, among other things, involved in the following:
Participates in Climate Action 100+
Participates in Nature Action 100
Participates in the financial sector’s climate partnership
Member of the Institutional Investors Group on Climate Change (IIGCC)
Member of the United Nations-convened Net-Zero Asset Owner Alliance (NZ AOA)
Approved targets under the Science Based Targets initiative (SBTi)
Member of Nordic Engagement Cooperation
Signatory to the Principles for Responsible Investment (PRI)
Support to the Net Zero Engagement Initiative
Signatory to the investor statement “Moving together on nature”
Member of Dansif
Member of the Carbon Disclosure Project – CDP
Member of Ocean Plastic Forum
Member of the partnership for increased biodiversity in Copenhagen
