Your pension is your most important climate investment

In PFA Climate Plus, we have tightened the selection criteria and set more objective external requirements for which assets PFA Climate Plus can invest in. These requirements are closely linked to the green transition of society. 

A company in the equity portfolio can be included in PFA Climate Plus if either: 
1) The company’s percentage compliance with the EU classification system (Taxonomy) based on revenue is equal to or greater than 15 %.
2) The company is either committed to the Science-based Targets initiative (SBTi) or has SBTi-approved climate targets. 
3) The company has an implied temperature rise (ITR) of less than 2°C.

For listed government and corporate bonds, investments are made exclusively in green bonds whose issuance is based on The International Capital Market Group (ICMA) principles for green bonds. PFA will also invest in ordinary government and mortgage bonds.
In relation to property investments, the majority of the properties in the product are either energy efficient (Energy Label A), in accordance with the EU classification system (Taxonomy) or have DGNB Platinum or Gold certification (or equivalent). 

The product’s alternative investments in private equity, infrastructure and unlisted credit are made with the intention to contribute to green transition (where possible in line with requirements for similar listed assets). In addition, there is a focus on investments in natural resources with CO2-absorbing properties that are to contribute to realising the ambition of making all PFA Climate Plus investments carbon-neutral in 2025 and carbon-negative in 2030. 

In PFA Climate Plus, oil, coal and gas companies are excluded. 
For listed equities, this is done by following the exclusion criteria of the EU Paris-Aligned Benchmark (PAB)* and excluding oil, gas and coal producers measured by MSCI’s Global Industry Classification Standard (GICS) – Energy sector – which means: 
- No oil, coal and gas companies 
- No companies deriving 1 % or more revenue from exploration for, mining, extraction, distribution or refining of steam coal and lignite 
- No companies deriving 10 % or more revenue from the exploration for, extraction, distribution or refining of petroleum fuels
- No companies deriving 50 % or more revenue from the exploration for, extraction, production or distribution of gas
- No companies deriving 50 % or more revenue from the production of electricity with a greenhouse gas intensity of more than 100 g CO2e/kWh.
For corporate bonds, companies that are oil, gas and coal producers as measured by Bloomberg Fixed Income Classification System (BCLASS) – Energy sector – are excluded.

Alternative investments do not invest in assets that extract oil, coal or gas. In addition, a stricter due diligence process applies, and assets are reviewed at least once a year to ensure that underlying assets have not become strongly linked to the fossil fuel sector**.   

In addition to oil, coal and gas, PFA Climate Plus also excludes the arms sector in MSCI’s Global Industry Classification Standard (GICS) – Aerospace & Defense sub-sector.

*Defined by Article 12 “Exclusions for EU Paris-aligned Benchmarks”, COMMISSION DELEGATED REGULATION (EU) 2020/1818 of 17 July 2020
**For alternative fund investments, investments can exceptionally be made in assets with a link to fossil activities if these assets offer a clear contribution to the green transition. Here, the fund/the fund’s mandate will be considered as one single asset.