PFA puts European security on the agenda

PFA is now making European security a cornerstone of its corporate responsibility work. By 2030, PFA will, among other things, increase its European investments to at least DKK 500bn, allocate 50 per cent of its investments in listed defence shares to European companies and launch five new funds in the defence sector.

PFA’s core task is to ensure financial security, health and a good later life for 1.3 million customers. An important part of that task is also to invest responsibly and contribute to more sustainable societal development, while ensuring that customers receive competitive investment returns. That is why, for many years, PFA has focused on the green transition through both direct investments and active ownership in the companies in which it invests. This effort is now also being expanded to include European security, including investments in defence, security of supply and European competitiveness.

Peace of mind about savings and a secure future worth saving for
According to PFA’s CEO, Ole Krogh, the stronger focus on security is a direct consequence of developments in recent years: security of supply, competitiveness and renewable energy are increasingly interconnected, while Europe’s security and values are under growing pressure.

“PFA’s primary task is to give customers peace of mind about their savings by delivering competitive investment returns while also helping to ensure that, both now and in the future, society is a safe place to live. The geopolitical developments of recent years have made clear the need for Europe to become more self-reliant. We therefore need to strengthen Europe’s competitiveness and ensure greater independence in strategically important areas such as defence and energy. We have been focusing on this for some time, and we are now taking the next step by establishing security as an independent strategic focus in our work,” says Ole Krogh.

He points out that PFA has set a clear course towards 2030. The ambition is to increase investments in Europe from DKK 400bn today to DKK 500bn by 2030. In addition, the goal is for half of PFA’s investments in listed defence shares to be placed in European companies. All of this is guided by a clear objective and an expectation that it will also contribute to competitive returns. At the same time, PFA will strengthen its active ownership with a focus on security and establish five new funds for customers interested in allocating a larger part of their savings to investments that support European security, growth and competitiveness.

The Danish pension model as a leading example
The ambition to strengthen Danish and European security must always go hand in hand with PFA’s primary goal: to generate strong long-term returns for customers. That is why PFA also works closely with the industry and policymakers to make Europe an even stronger investment case.

“Europe has achieved a stronger shared understanding of the challenges, but more action is needed to strengthen capital markets, improve framework conditions and create better conditions for attracting long-term capital – especially in critical areas such as energy, innovation and defence. If Europe is to increase investment in these areas, the ability to mobilise capital will also be important, and here European countries would do well to draw inspiration from, for example, the Danish pension system. It not only contributes to a more resilient economy and good conditions in later life, but also provides substantial financial capacity that can be channelled directly into long-term investments in European defence, competitiveness and security of supply,” says Ole Krogh.

In this context, he refers to the so-called Draghi Report from 2024 on European competitiveness. It specifically highlights Denmark, together with the Netherlands and Sweden, as examples of how strong pension systems can mobilise long-term capital. Together, the three countries account for around 62 per cent of all pension savings in Europe, even though they represent only around 7.5 per cent of the population.

Find out more about PFA’s corporate responsibility
As part of its updated approach to corporate responsibility, PFA has – in addition to the extra focus on security – generally raised its ambitions across the five focus areas of PFA’s corporate responsibility: financial security, health, a good later life, climate and security.