PFA is committed to zero CO2 emissions from investments by 2050 at the latest

Kasper A. Lorenzen, Group CIO, PFA.

PFA has joined the UN-backed initiative Net-Zero Asset Owner Alliance, through which a number of the world's biggest investors are committed to achieving zero CO2 emissions from investments by 2050.

For years, PFA has worked systematically towards corporate responsibility in investments, and has also committed to meeting the objectives of the Paris Agreement. PFA is now taking another significant step on this journey by joining the Net-Zero Asset Owner Alliance (AOA). With this comes an obligation to achieve net zero CO2 emissions from the investment portfolio by 2050, and PFA is also obliged to set five-year goals for the developments in CO2 emissions leading up to that year.

“This is a significant step for PFA, and an extension of our other work relating to responsible investments and, not least, the climate. The strength of this association of major global investors is the very specific and ambitious goals to which we are committing. Together, we are investing a very large amount, and this initiative can therefore help to accelerate the development needed to keep the temperature increase within the framework of the Paris Agreement,” says Kasper A. Lorenzen, Group CIO, PFA.

Substantial savings working for the climate

With PFA on board, AOA has 23 large investors among its members, collectively managing USD 4,600 billion, corresponding to approximately DKK 31,623 billion. Members must ensure that their investments are compatible with a scenario in which the maximum temperature increase this century remains at 1.5 degrees. The UN-backed Principles for Responsible Investments (PRI) provides the secretariat function. The World Wildlife Fund, WWF, is one of the partners in this initiative.

“At WWF, we are very pleased that PFA is now committing to the Paris Agreement's 1.5-degree target. The large amounts of money managed by the pension companies, enable the companies to have a decisive influence on the companies’ readiness to make green sustainable decisions. In recent years, many reports from WWF have concluded that most pension companies have not pulled their weight when it comes to the green transition. Now, PFA is taking the lead in Denmark and joins the international club of financially strong investors who take responsibility for the planet we share. The world’s nature and wildlife need the help of investors, and therefore I look very much forward to cooperating with PFA,” says Bo Øksnebjerg, Secretary General, WWF Denmark. He adds that WWF puts its trust in PFA’s decision being an inspiration to the rest of the pension sector to make the same moves.

Knowledge sharing can promote common progress

PFA's group investment director says that the initiative may also contribute to important knowledge sharing.

“In addition to the commitments we require from each other as participants, we can also use the initiative to share our experience. In some areas, climate-friendly investments are a relatively unknown field, and data quality can be a challenge. By joining together as some of the world's largest investors, we can find better solutions to those problems than if we work separately,” says Kasper A. Lorenzen.

In addition to the general work relating to responsible investments, this summer PFA will launch its climate-conscious savings product PFA Climate Plus, through which customers will be able to invest all or part of their savings even more directly in the work towards the green transition.