Increased focus on climate

The investments are based on PFA’s entire investment universe, which means that investments are made in, for example, shares, bonds and alternative investments. In order to ensure that investments contribute to promoting the green transition while at the same time achieving the best possible return potential, there are stricter climate criteria for the assets in which your savings in PFA Climate Plus can be invested.

A company in the share portfolio can be included in PFA Climate Plus if one of these criteria is met: 

   

The share of the company’s revenue that is in accordance with the EU classification system (the taxonomy) amounts to 15 per cent or more. 

   

The company is either committed to the Science Based Targets initiative (SBTi) or has STBi-approved climate targets. 

   

3. The company has an implied temperature rise (ITR) of less than 2 degrees.

For the bond portfolio, the general rule is that investments are made in green-listed government and corporate bonds issued on the basis of the International Capital Market Association (ICMA)’s principles for green bonds. Investments will also be made in standard mortgage bonds.

In the majority of the property portfolio, investments are made in properties that are either energy efficient (Energy Label A) in accordance with the EU classification system (the Taxonomy) or have DGNB platinum or gold certification (or equivalent).

Alternative investments in the form of private equity, infrastructure and unlisted credit are made with the aim of contributing to the green transition (where possible in line with the requirements for comparable listed assets). In addition, there is a focus on investments in natural resources with CO2-absorbing qualities, which are intended to help realise the ambition of making the total investments from PFA Climate Plus CO2-negative in 2030.

As the investment universe is limited, we expect that the return over a lifetime may be lower than in PFA Plus, although in practice the return may be higher, the same or lower.

PFA Climate Plus advantages 

CO2 focus across the value chain in PFA Climate Plus

The equity portfolio in PFA Climate Plus must emit at least 60 per cent less CO2 than the world equity index, MSCI ACWI. This is measured by scopes 1, 2 and 3.

Scope 1 measures the direct CO2 emissions from the company itself, whereas scope 2 measures the CO2 emissions that the company is indirectly responsible for, for example CO2 emissions from energy produced for the company. Scope 3 measures the CO2 emitted by the company’s other indirect upstream and downstream activities, i.e. activities not owned, controlled or managed by the company. For example, the use of the company’s products and the purchase of materials for the production of the company’s products. 

Which risk profile should I choose? 

You choose the risk profile that matches your risk appetite. Your options are: Profile Low, Medium or High. The profiles differ in terms of the balance between return potential (what you may earn) and risk (the possibility of fluctuations in your savings). The higher the risk you take on, the greater the risk of fluctuations in your savings, as a larger share will be invested in the PFA Climate Plus High-risk fund. However, a higher risk will also mean a greater return potential on your savings. 

The choice of investment profile is important for your pension savings – as well as for your future. Therefore, it is important that the relation between risk and return matches your preferences and your finances. The right choice depends, among other things, on what your overall financial situation and your total long-term savings look like. Profile Medium will often be suitable for most people, Profile Low may be a better option for you who have less risk tolerance. Meanwhile, Profile High may be the perfect match, if you prefer to invest your savings with the potential of a higher return, but thus also a higher risk of loss.

 

Profile Low

Approximately 60 % of your savings are invested in the PFA Climate Plus High-risk fund while approximately 40 % in the PFA Climate Plus Low-risk fund. 

The allocation indicates the risk in the profile before gradual reduction of risk, which begins 14 years before starting to receive pension payouts. At retirement, the investments in the PFA Climate Plus High-risk fund are gradually reduced to approximately 30 per cent. Hereafter, the proportion will be reduced by approximately 1 percentage point per year and be approximately 10 per cent 20 years after retirement. The percentage will not fall below approximately 10 per cent.

 

 

Profile Medium Climate icon

Approximately 95 % of your savings are invested in the PFA Climate Plus High-risk fund while approximately 5 % in the PFA Climate Plus Low-risk fund. 

The allocation indicates the risk in the profile before gradual reduction of risk, which begins 18 years before starting to receive pension payouts. At retirement, the investments in the PFA Climate Plus High-risk fund are gradually reduced to approximately 45 per cent. Hereafter, the proportion will be reduced by approximately 1 percentage point per year and be approximately 20 per cent 25 years after retirement. The percentage will not fall below approximately 20 per cent.

 

Profile High

100 % of your savings will be invested in the PFA Climate Plus High-risk fund.

The distribution indicates the risk in the profile before gradual reduction of risk, which begins 12 years before retirement. At retirement, the investments in the PFA Climate Plus High-risk fund are gradually reduced to approximately 60 per cent. Hereafter, the proportion will be reduced by approximately 1 percentage point per year and be approximately 30 per cent 30 years after retirement. The percentage will not fall below approximately 30 per cent.

Do you have Profile Cautious? Read more here.