PFA Climate Plus

Your pension is your most important climate investment

With PFA Climate Plus, you can place part of or all your pension savings in investments that help promote the green transition through a focus on a low carbon footprint, investment in assets that support the green transition and active ownership.

In PFA Climate Plus, we have increased our focus on climate to promote the green transition

In the PFA Climate Plus product, we first and foremost work to ensure a good return, but at the same time we also work to promote the green transition. We do so by focusing on a low carbon footprint, investing in assets with attractive risk-adjusted returns that support green transition as well as active ownership. 

With PFA Climate Plus, your pension savings are based on three climate ambitions:

 
Increased focus on CO2

The PFA Climate Plus equity portfolio must emit 60 % less CO2 than the world equity index measured across the full value chain1.

Exclusion of the fossil sector

Oil, coal and gas companies and companies with strong links to the fossil sector are excluded2.

Carbon-neutrality in 2025

The ambition is to be carbon neutral by the end of 2025 and carbon negative by the end of 2030 measured by scopes 1 and 23.

 
PFA Climate Plus also excludes weapons measured according to MSCI’s Global Industry Classification Standard (GICS), sub-industry Aerospace & Defence. The investments are made on the basis of PFA’s Policy for Responsible Investments and Active Ownership, which is to ensure that PFA promotes compliance with international standards for, among other things, human rights, labour rights, the environment and anti-corruption.

Please note that investments that support a low carbon footprint are not necessarily sustainable in themselves.

  
1MSCI All Countries World Index, CO2 is measured using scopes 1, 2 and 3.
2For listed shares, this is done by applying the exclusion criteria of the EU Paris-Aligned Benchmark (PAB), as well as criteria specified in GICS Energy Sector. Defined by Article 12 ‘Exclusions for EU Paris-Aligned Benchmarks’, COMMISSION DELEGATED REGULATION (EU) 2020/1818 of 17 July 2020
3The ambition is to be achieved by investing in forestry and technology that capture CO2 from the atmosphere. Carbon negative means that the underlying investments remove more CO2 from the atmosphere than they emit.

How we contribution to the green transition

In order to ensure that we promote the green transition while working for the best possible return for our customers, we have increased our climate requirements and exclusion criteria in PFA Climate Plus compared to PFA Plus.

 

Strict climate criteria

In PFA Climate Plus, we apply strict selection criteria and objective external requirements when choosing 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 generally made in green bonds the issuance of which is based on The International Capital Market Group (ICMA) principles for green bonds. PFA will also invest in ordinary government and mortgage credit 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 investments in PFA Climate Plus carbon neutral by 2025 and carbon negative by 2030. 

Like PFA’s other investments, the investments in PFA Climate Plus are assessed on the basis of the requirements we have set out in our Policy for Responsible Investments and Active Ownership.

You can read more about PFA Climate Plus’ approach here: Sustainability-related disclosure

Exclusion of the fossil sector

In PFA Climate Plus, oil, coal and gas producers as well as companies with high exposure to the fossil sector, are excluded from the equity portfolio. 

For listed equities, this is done by applying 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.  
*Defined by Article 12 “Exclusions for EU Paris-aligned Benchmarks”, COMMISSION DELEGATED REGULATION (EU) 2020/1818 of 17 July 2020

Exclusion of weapons

PFA Climate Plus excludes the arms sector measured according to MSCI’s Global Industry Classification Standard (GICS), sub-industry Aerospace & Defence.

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. 

We continuously measure the CO2 emissions of our portfolios
and compare them to the world index

As the model shows, the equities in PFA Climate Plus emit 66 % less CO2 than the world equity index,
while investments in PFA Plus at the time of measurement emitted 24 % less CO2.

Source: The MSCI All Country World Equity Index measures CO2 by Scope 1,2 and 3 as at 31.03.2025
Updated: 31.03.2025

PFA Plus vs. PFA Climate Plus


Compared to PFA Plus, PFA Climate Plus to a greater extent promotes the green transition by focusing on a low carbon footprint. This is done via exclusion of the fossil sector and other climate requirements for the equity portfolio’s carbon footprint as well as the product’s ambition for CO2 neutrality and negativity. 

With the same investment risk, you should expect a slightly lower return in the long term and greater fluctuations in PFA Climate Plus in the short term than in PFA Plus. In practice, however, the return can be higher, the same or lower.

Listen to investment specialist, Carsten Trier, explain more about PFA Climate Plus
Comparison between PFA Plus and PFA Climate Plus
In the table below, you can see a comparison of the two savings choices across a number of key parameters:
Parameters PFA Plus  PFA climate Plus
PFA's obligations and policies    
PFA's policy for responsible investments and active ownership ✔ ✔ 
PFA's Science based Targets Initiative obligation ✔
 ✔ 
PFA's overall ambition for CO2 reduction ✔
 ✔
Exclusions    
Exclusion of tar sands and coal companies* ✔ ✔
Exclusion of oil and gas companies* – ✔
Exclusion of arms manufacturers** – ✔
Exclusion of controversial weapons*** ✔  ✔
CO2 ambitions    
CO2 footprint relative to the world index (Scope 1+2+3)
Lower
 Minimum 60 % lower
Ambition for CO2 neutrality this year (Scope 1+2) 2050 2025
Ambition for CO2 Negativity This Year (Scope 1+2) – 2030
Return expectations    
Expected return in relation to PFA Plus**** –
 Slightly lower long-term expected return

*For listed shares, this is done by applying 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: 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. 
**Measured according to MSCI’s Global Industry Classification Standard (GICS), sub-industry Aerospace & Defence.
***Controversial weapons: Anti-personnel mines, cluster munitions, biological and chemical weapons.
****The stricter entry requirements mean that PFA Climate Plus should expect to operate in a smaller investment universe compared to PFA Plus. This means that with the same investment risk, you should expect a slightly lower return and higher short-term fluctuations than in PFA Plus. In practice, the return can be higher, the same or lower. 

 
Read more about how PFA works with responsible investments

Extra climate-friendly savings solution

Through PFA’s Investment Guide at mitpfa.dk, you can identify your risk appetite and your preference for sustainable investments.
The guide consists of a number of questions and produces a recommendation based on your replies.

Log on to My PFA