PFA Climate Plus

Make your pension even greener

PFA Climate Plus enables you to place your pension savings in extra climate-friendly investments. From the outset, shares in PFA Climate Plus will emit 60 % less CO2 than the global equity index. The goal is for PFA Climate Plus to become CO2-neutral by 2025 and remove more CO2 from the atmosphere than it emits by 2030. As with the rest of PFA’s investments, in PFA Climate Plus, investments are also selected on the basis of respect for social conditions and corporate governance – collectively referred to as ESG.

Same risk level and return potential

The PFA Climate Plus product is rooted in the basic idea that the risk and the expectation of revenue must follow the existing market interest rate product, PFA Plus. Basically, this means that, even if you choose to invest some of your savings in PFA Climate Plus, you will maintain the same risk level and long-term return potential.

Having said that, the return will evolve differently as the products are invested in different assets. While many of the assets in PFA Climate Plus are also part of the rest of PFA’s portfolio, the reverse is not the case. This is due to the extraordinarily high climatic requirements, which only a limited number of companies can fulfil. Accordingly, PFA Climate Plus contains far fewer companies than the regular PFA Plus product. This usually triggers major fluctuations, especially in the short term, since there are fewer assets to balance each other.

PFA Climate Plus is based on three concrete climate goals

For a number of years, PFA has worked systematically to integrate accountability and sustainability into our investment of the pension customers’ savings.
For one thing, our approach is based on the goals of the Paris Agreement and the UN Global Goals. In terms of supporting the green transition, PFA Climate Plus goes one step further. Basically, investing your pension in a climate-friendly way should be simple and flexible, and the climate objective clear and tangible. That is why PFA Climate Plus is based on three climate goals.

From the outset, the equity portfolio in Climate Plus will emit 60 % less CO2 than the global equity index (MSCI ACWI)1.



As we approach 2025, the ambition is for the entire product to be CO2-neutral2.


As we approach 2030, the ambition is for the entire product to be CO2-negative2, removing more CO2 from the atmosphere than the investments emit 

1 The MSCI All Country World Equity Index measures CO2 by Scope 1 and Scope 2 (see later in the text) in the listed equity portfolio in tons of CO2 emitted per million USD invested.
2 We attempt to achieve this goal by investing in forestry and technology that removes CO2.

PFA Plus versus PFA Climate Plus

PFA’s investments in general

PFA aims systematically to take societal issues into account when investing customers’ savings. We do so by continuously assessing companies’ accountability profile in relation to issues such as climate and the environment, corruption, tax practices, corporate governance and human rights. The assessment is based on PFA’s policy for responsible investments, which is rooted in PFA’s Board of Directors and which can be viewed on at any time.

If we consider that a company does not comply with PFA’s policy for responsible investments, in the first instance we talk to that company in an effort to influence its behaviour. If discussions do not lead to the desired changes, PFA will consider divesting itself of the company in question and, in extreme cases, place it on our exclusion list. Both the exclusion list and the discussions can be viewed under ‘Corporate Responsibility’ on

Overview of the difference between PFA Plus and PFA Climate Plus

The chart below illustrates a comparison of the two products on the basis of a number of parameters:

Parameters PFA Plus  PFA Climate Plus
Responsible investments and active ownership ✔ 
Extra focus on climate
Fossil fuels ✔ 
CO2 emission in terms of the global stock index -16 % -60 %
Goal to be CO2 -neutral by 2050 2025
Alternative investments and properties Approx. 23 % currently Approx. 20 % over time
Risk in relation to PFA Plus
Comparable risk with PFA Plus*
Expected return in relation to PFA Plus
Same long-term return as PFA Plus
APR 0,6-0,99 % 0,6-0,99 %
Scaling down towards retirement ✔ 
* The equity portfolio in PFA Klima Plus consists of fewer shares (approximately 50) and has a core theme of reduced climate impact. This means that the concentration risk is greater in PFA Climate Plus. At the same time, PFA Climate Plus has a so-called scenario risk if, for example, the political and business climate focus shifts significantly in relation to the current one.

Specific criteria for PFA Climate Plus

Here you can see the climate criteria that apply to the various assets of PFA Climate Plus: 

Like PFA’s other investments, the PFA Climate Plus portfolio is assessed on the basis of the requirements we have set for our responsible investment policy. There is also an additional regard for climate, which means, for one thing, that investments in oil, coal and gas companies are excluded. It also means that the equity portfolio will be far more focused on climate-friendly companies. Whereas the current equity portfolio in PFA Invest includes approximately 1,000 companies, currently the equity portfolio in PFA Climate Plus includes only approximately 50 companies.

When it comes to bonds, to a far greater extent than in PFA’s other investments, PFA Climate Plus will use so-called ‘green’ bonds, issued for the funding of measures that help tackle the climate challenge. The same requirements apply to corporate bonds as to shares. There is no investment in bonds from oil, coal and gas companies, and bond issuers must have a climate-positive business model. PFA will also invest in ordinary government and mortgage bonds.

PFA Climate Plus will also use derivatives (financial contracts for assets) based on shares, interest rates, etc. to ensure optimal risk management. Equity derivatives are subject to the same requirements as the equity portfolio in PFA Climate Plus.

Alternative investments
Alternative investments and properties are a very important part of the existing PFA Plus product. The idea is also for PFA Climate Plus to invest approximately 20 % of the portfolio in alternative investments and properties. These investments must also meet the climate requirements that apply to PFA Climate Plus. Therefore, the development of the alternative and property portfolio is expected to be a gradual process.

How does PFA measure the CO2 emissions of the portfolio?

PFA’s work on climate targets depends on our ability to measure and monitor the CO2 emissions of our equity investments. This is not entirely adequate, since there is a lack of sufficient data for many assets. Fundamentally, therefore, PFA only systematically measures CO2 emissions from the equity portfolio; not from the likes of the bond portfolio or our alternatives. 



Source: MSCI 2019
From the outset, shares in PFA Climate Plus will emit 60 % less CO2 than the world equity index (MSCI ACWI), while PFA currently emits 16 % less CO2.
CO2 emissions in investments are measured by tons per USD million invested. For MSCI ACWI, CO2 emissions were 135 tons per USD million invested in 2019, while in PFA Plus and PFA Climate Plus they stand respectively at 113 and 54 tons per USD million invested.


PFA obtains figures from the global share index, MSCI

PFA’s assessments and benchmark are based on data from the MSCI ACWI (All Country World Index), which annually publishes estimates for the CO2 emissions of individual companies. Even though MSCI is currently the market standard for measuring CO2 emissions from an equity portfolio, the data used is still subject to a degree of uncertainty. This is partly because a lot of data is retrospective and may be a year or two old; and partly because there are still many companies that do not even publish data on their CO2 emissions. In the latter case, MSCI itself assesses emissions by using comparable companies in the same industry and locality.

MSCI’s assessment takes into account three different aspects of a company’s CO2 emissions. These are known as ‘Scopes’. While there is reasonably reliable data for Scopes 1 and 2, Scope 3 is subject to great uncertainty and is difficult to calculate. Consequently, it is not currently included in the measurement or benchmark of PFA Climate Plus.

• Scope 1 is the CO2 emitted by a company’s activities – e.g. manufacturing, etc.
• Scope 2 is the CO2 for which a company is indirectly responsible – e.g. CO₂ from energy produced for the company.
• Scope 3 is the CO2 emitted by the company’s other indirect activities: in other words, sources that companies do not own, control or manage. This might be, for example, the application of a company’s products.    


Your savings can make a difference

With PFA Climate Plus, your pension will be invested in a particularly climate-friendly manner with a strong focus on reducing CO2 emissions.  Here you can find examples of how much you can reduce your carbon footprint on an annual basis through a given savings plan compared to the global equity index (MSCI ACWI).

If you already have your savings invested in PFA Plus and then select PFA Climate Plus, your carbon footprint reduction will be slightly lower than shown here.
This is because the investments in your current PFA Plus plan are already greener than the global equity index.

How we calculate CO2 savings

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) 14.2 7.6 6.1
PFA Climate Plus profile C 5.7 3.0 2.4
CO2 savings, tonnes 8.5 4.6 3.7
CO2 savings, % 60 % 60 % 60 %
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, (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.

Electricity consumption

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

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.

Use the Investment Guide to manage your climate profile

By using the PFA Investment Guide at My PFA, you can identify your willingness to take risks and your preferences for climate-conscious investments. The guide features a number of questions and, based on your answers, will provide an individual and qualified recommendation both for your choice of risk and for your climate profile.