The calculations in the examples shown are for guideline purposes only and are based on a savings plan using the investment profile PFA Climate Plus Profile C before the gradual reduction of risk.
PFA Climate Plus is a particularly climate-friendly investment plan with a strong focus on reducing CO2 emissions around the world.
A key element of PFA Climate Plus is the fact that it is easy for customers to allocate all or parts of their pension savings to reducing CO2 emissions. The product will feature a targeted selection of shares in companies that are working to reduce global CO2 emissions and make a positive impact on the climate, combined with investments in climate-friendly projects such as offshore wind farms and sustainable properties. No investments will be made in oil, coal or gas. As a rule, shares in PFA Climate Plus will emit 60 % less CO2 than the global equity index.
When you allocate your savings to PFA Climate Plus, you will be investing in two funds, PFA Climate Plus Low and PFA Climate Plus High. PFA Climate Plus Low mainly invests in bonds, and with bonds, data on CO2 emissions is only available to a very limited extent, and in many cases, the data is not valid and/or consistent. PFA Climate Plus High mainly invests in shares, and here MSCI updates the CO2 emissions of the individual companies on an ongoing basis. The reduced carbon footprint is therefore exclusively calculated as the difference your investments in PFA Climate Plus High makes in terms of CO2 emissions compared to the emissions had your investments been made in the global equity index instead.
In addition, the number of years before retirement and the selected risk profile will also have an impact on how much lower the carbon footprint is. This is because PFA Climate Plus is a lifecycle product where the investment risks and your proportion invested in PFA Climate Plus High is gradually reduced from, at the earliest, 15 years before your retirement date.
Examples of how CO2 emissions are reduced when investing DKK 1 million in PFA Climate Plus Profile C
|Tonnes of CO2
||20 years to retirement
(75 % shares)
|5 years to retirement
(40 % shares)
|0 years to retirement
(32 % shares)
|Benchmark (MSCI ACWI)
|PFA Climate Plus profile C
|CO2 savings, tonnes
|CO2 savings, %
Reliable data is required
The carbon footprint examples are to be interpreted as estimates, as the reliability of carbon footprint calculations is limited by several factors. By far the largest and most important factor is the lack of valid and consistent data. With PFA Climate Plus, the investments’ carbon footprints are based on the reports from individual companies or an estimate of their CO2 emissions.
MSCI publishes data on the CO2 emissions of individual companies on a yearly basis. This data is updated once per year by MSCI ESG, but it is still associated with some uncertainty. In the cases where companies do not publish data themselves, MSCI estimates the emissions by looking at comparable companies in the same industry and geographical area. An important limitation to keep in mind is that these data are often a few years old and, of course, they only provide data on past emissions. Nonetheless, MSCI is a market standard for measuring CO2 emissions from listed equity portfolios. The market standard, and thus MSCI’s aggregated estimate for CO2 emissions from companies in the global equity index MSCI ACWI, are used as the benchmark for PFA’s CO2 emissions in PFA Climate Plus.
This does not currently (as of June 2020) apply to other asset classes such as credit, government bonds, alternative investments and properties, as data here is extremely limited and, in many cases, invalid and/or inconsistent. This means that calculating the carbon footprint with a reasonable degree of precision across all PFA’s products, including PFA Climate Plus, using existing data will be based on a few erroneous sources and assumptions, and valid data is only available for benchmarking with the PFA Climate Plus High fund.
Therefore, there will be some uncertainty surrounding the calculations of CO2 emissions, and the numbers shown will change over time. This is partly due to the quality of the available data becoming better, and it is also because it is expected that companies will reduce their carbon footprints in the years ahead. PFA is also making changes to the PFA Climate Plus investments on an ongoing basis, as our ambition is for the product to be carbon neutral by no later than 2025. Data used in the calculations are from the following source: MSCI ESG Manager.
Transport by car results in the emission of CO2 and the CO2 emissions are often calculated as per car, per kilometre. This type of calculation depends on several factors such as the type of car, type of fuel, car/engine size and distance travelled. Generally, new types of cars, diesel cars and longer distances will lead to a reduction of emissions per car, per kilometre.
We base our calculations on the CO2 emissions from cars using fossil fuels registered in 2019, using the NEDC method. We have obtained data on new cars using fossil fuels from Statistics Denmark, see https://www.dst.dk/da/Statistik/nyt/NytHtml?cid=29398#, (in Danish) which also includes a more thorough documentation of the NEDC method.
According to the calculations, a car emits 116.6 grams of CO2 per kilometre in 2019, resulting in 3.4 tonnes of CO2 emissions when travelling 29,310 kilometres.
Household electricity consumption results in CO2 emissions and is often calculated as CO2 emission per sold kWh. When searching online, you can find various assessments of household electricity consumption. According to the Danish Energy Agency, each person uses approximately 1,600 kWh per year and the consumption will vary depending on whether a person lives in a house or a flat, and it will also typically be higher if one is living alone. Refrigerators, freezers, etc. are powered 24/7 and use more or less the same amount of electricity whether you live alone or with others. If you are several people sharing a home, then the electricity consumption of such appliances will be shared, and this will result in a lower consumption rate per person.
In our calculation of CO2 emissions, we use the figures for electricity consumption of a family of four living in a house and we also use Ørsted’s average electricity consumption figure amounting to 5,181 kWh per year. In addition, we use figures from Energinet’s calculations showing CO2 emissions of 135 grams of CO2 per kWh, see https://privat.orsted.dk/kundeservice/forbrug/gennemsnitsforbrug/elforbrug/
According to these calculations, an average household has 699 kg of CO2 emissions per year from its electricity consumption.
Total CO2 emissions per capita
A person’s total consumption is a combination of both products and services and may consist of heating, clothes purchases, food, transportation, etc. All of the things we consume require energy to produce, and thus, result in CO2 emissions. Our daily consumption adds up to many tonnes of CO2 every year.
The International Energy Agency (IEA) collects and analyses data across more than 150 countries in order to, among other things measure CO2 emissions per capita. These calculations show that on average, a resident in Denmark emits 5.5 tonnes of CO2 per year.
See more here:
The calculations only include CO2 emissions from combustion fuels and is calculated using IEA’s energy balance sheets and the IPPC guidelines from 2006. Denmark does not include Greenland or the Faeroe Islands except in the period before 1990, when data on oil to Greenland was included in the statistics for Denmark.