PFA earns quality stamp for its green ambitions

PFA has had its climate goals officially validated by the Science Based Targets initiative (SBTi), which is the global industry standard for scientifically based climate targets. Validation by this independent organisation is an important step in PFA’s efforts to ensure an ambitious climate strategy that contributes to real change.

With this approval, PFA’s approach to reducing its carbon footprint – both from its own activities and through its investment portfolio – receives an international quality stamp. This means that the goals align with the Paris Agreement’s target of limiting global warming to 1.5 degrees, based on climate scenarios from the UN’s Intergovernmental Panel on Climate Change (IPCC).

“The approval from SBTi confirms that our climate targets and the pathways to achieving them rest on a solid, scientific foundation, ensuring they have a real impact in the real world. This is important because, although climate action has recently faced political headwinds, particularly from the USA, accelerating the green transition is crucial if we are to counter the worst climate changes. Moreover, green energy is also a key component in strengthening Europe’s energy independence and competitiveness,” says Rasmus Bessing, Head of Responsible Investments at PFA.

He elaborates that PFA’s overarching goal is to make its total investments carbon neutral by 2050. By 2030, 51 per cent of the investment portfolio must be placed in companies with SBTi-validated targets, and CO₂ emissions from the property portfolio must be reduced by 53 per cent compared to 2023.

In addition, PFA has validated that investments in its climate-focused product, PFA Climate Plus, are already climate neutral across all asset classes (scope 1 and 2) and are on track to become carbon negative by 2030.

Strengthening the role as a responsible investor
The approval from SBTi strengthens PFA’s role as an active owner and responsible investor. As Denmark’s largest pension company, PFA is working systematically to ensure that the companies in its portfolio set scientifically based climate targets. With the approval, PFA is in a stronger position to promote SBTi adherence and ensure credible transition plans among the companies it invests in.

“The approval is an important quality stamp. It documents that our approach meets the highest international standards. We will now use this strengthened position to bring even more companies on board and ensure they set credible and ambitious climate goals,” says Rasmus Bessing.

Climate efforts stand on multiple pillars
PFA has already invested over DKK 100 billion in green solutions such as renewable energy, green bonds and energy-efficient housing. At the same time, the company is systematically working as an active investor to promote the green transition in the companies it invests in.

“Our efforts for the green transition rest on two pillars. We have invested DKK 100 billion in the green transition, and at the same time, we are actively working as an investor to promote climate goals in the companies we invest in. This includes dialogue with the largest CO₂ emitters in our portfolio to ensure we push them in a greener direction. In this context, it is worth noting that companies like Nvidia and other large American corporations have recently had their climate targets validated by SBTi despite the resistance from the Trump administration and certain parts of the investment community,” says Rasmus Bessing.