PFA raises ambitions in PFA Climate Plus

PFA Climate Plus allows you to invest your pension savings with an extra focus on the climate. You do so by selecting an investment profile in PFA Plus and then allocating a portion of your savings to PFA Climate Plus.

We are increasing the ambitions in PFA Climate Plus

We have an ambition for PFA Climate Plus to be CO2-neutral in 2025, and we are close to achieving this goal.
Therefore, we are now further increasing our ambitions and tightening climate criteria.

  

 

Increased CO2 focus

The portfolio of shares in PFA Climate Plus must emit 60 % less CO2 than the global equity index measured across the full value chain*. 

 

Exclusion of the fossil sector

Ranging from oil, coal and gas companies to companies with significant ties to the fossil sector.

 

CO2 neutrality** by 2025

Continued ambition for CO2 neutrality in 2025 and CO2 negativity by 2030.


Stricter climate criteria and sustainability requirements via more objective metrics, which are fixed externally

* MSCI All Countries World Index, CO2 is measured on scope 1, scope 2, and scope 3
**Aimed to be achieved through investment in forestry and technology that removes CO2 from the atmosphere

Slightly lower expected return than PFA Plus

With the same investment risk, one should expect a slightly lower long-term return and greater short-term fluctuations in PFA Climate Plus compared to PFA Plus. In practice, however, the return can be higher, the same or lower.

Facts about PFA Climate Plus

PFA Climate Plus promotes the green transition by not only striving for the best possible return when selecting investments but also focusing on the transition to a low-emission economy*, thereby contributing to the reduction of CO2 emissions for the benefit of the climate. Additionally, all PFA products consider compliance with international standards for responsibility, including human rights, labour rights, the environment and anti-corruption to the greatest extent possible.

Please note that investments supporting a low CO2 footprint are not necessarily sustainable in themselves.

 


* I.e., an economy designed to minimize the emission of greenhouse gases, especially CO₂. The goal of a low-emission economy is to reduce environmental impact by promoting sustainable practices, technologies, and energy sources that emit fewer greenhouse gases, such as the use of renewable energy and the promotion of a circular economy.

The most important changes in PFA Climate Plus



How do the changes affect you in PFA Climate Plus?

With these changes, PFA will strengthen the climate focus of the product for the benefit of its many climate-conscious customers. This includes tightening the climate requirements for the companies included in the investment portfolio.

Learn more in the video with PFA's head of responsible investments, Rasmus Bessing.


Tighter climate criteria

In PFA Climate Plus, we tighten the selection criteria and set more objective external requirements for which assets PFA Climate Plus can invest in. These requirements are closely linked to the sustainable transformation of society.

In order to be included in PFA Climate Plus, the following criteria apply to the share portfolio.
The company must either:
a) Have a share of Taxonomy-related activities of: >=15 % (reported/estimated)
b) Have an SBTI Commitment (committed/approved)
c) Comply with the criterion for Implied Temperature Rise below 2 degrees

Broader exclusions of the fossil fuel sector

With the new increased focus, PFA Climate Plus will not only exclude oil, coal and gas companies, but also companies with strong ties to the fossil fuel sector.

The exclusion criteria in the share component are determined based on the criteria specified in GICS Energy Sector and the definition in MSCI Climate Paris Aligned Index:
- No oil, coal and gas companies
- Companies deriving 1 per cent or more revenue from exploration for, mining, extraction, distribution or refining of steam coal and lignite
- Companies deriving 10 per cent or more revenue from the exploration for, extraction, distribution or refining of petroleum fuels
- Companies deriving 50 per cent or more revenue from the exploration for, extraction, production or distribution of gas
- Companies deriving 50 per cent or more revenue from the production of electricity with a greenhouse gas intensity of more than 100 g CO2e/kWh.

Continued carbon neutrality by 2025 measured according to scopes 1+2

We maintain our ambition of carbon neutrality in 2025 and negativity in 2030 overall in share investments in the PFA Climate Plus products. This will continue to be achieved through investments in forestry and technology that can capture CO2 from the atmosphere.

Slightly lower expected return than other savings in PFA

The stricter requirements for share investments mean that PFA Climate Plus can be expected to have a smaller investment universe than the rest of PFA’s savings. This means that with the same profile, i.e. with a similar investment risk, you can expect a slightly lower return and higher short-term fluctuations than in PFA Plus. In practice, however, the return can be higher, the same or lower.

Increased CO2 focus throughout the entire value chain

Today, we measure the CO2 emissions of the share portfolio according to scope 1 and scope 2. That is, the CO2 emitted by the company’s activities, such as production etc. (scope 1) and the CO2 that the company is indirectly responsible for, such as CO2 from energy produced for the company (scope 2).

From 1 April 2025, we will increase the focus in PFA Climate Plus and include the CO2 emitted by the company’s other indirect activities, i.e. sources that companies do not own, control or manage. For example, the use of the company’s products and the purchase of materials for the production of the company’s products (scope 3).

In the future, the share portfolio in PFA Climate Plus must emit 60 per cent less CO2 than the Global Equity Index measured over the entire value chain.

Comparison between PFA Plus and PFA Climate Plus (from 1 April 2025)
The chart below shows a comparison of the two options on the basis of a number of parameters:
Parameters PFA Plus PFA Climate Plus
Responsible investments and active ownership ✔ ✔ 
Extra climate focus –
 ✔ 
Exclusion of fossil fuels* –
 ✔
CO2 emissions compared to the Global Equity Index (measured according to scopes 1+2+3) –
 60 %
Ambition to be CO2-neutral this year (measured according to scopes 1+2) 2050 2025
Ambition for CO2 negativity this year (measured according to scopes 1+2) – 2030
Expected return in relation to PFA Plus** –
 Slightly lower expected long-term return

*This is an exclusion of oil, gas and coal companies (exclusion of GICS energy classification + BICS Energy ex. Renewables), as well as exclusions in relation to Paris-aligned benchmark.
**The stricter entry requirements mean that PFA Climate Plus should expect to operate in an even smaller investment universe than PFA Plus. This means that with the same investment risk, you should expect a slightly lower return and higher short-term fluctuations than in PFA Plus. In practice, however, the return can be higher, the same or lower

Read more about how PFA works with responsible investments

Get a recommendation for choosing an investment profile via PFA’s investment guide

If you are unsure whether you have the right investment profile, you can easily and quickly get help from the investment guide at My PFA, where you can also change your investment profile. From 1 April 2025, the guide will be updated with the latest changes, but you can consult it already now to find out which investment profile is right for you. If you choose to change profile before 1 April 2025, you will automatically be transferred to the corresponding new profile on 1 April 2025.

Get answers to the most frequently asked questions

1. When will the changes to PFA Climate Plus take place?

The changes in PFA Climate Plus will take place on 1 April 2025. You can read more about the changes in the sustainability-related information from 1 April 2025 at pfa.dk

2. Where can I see if I have PFA Climate Plus today?

You can always see your current profile and the portion of your savings that is allocated to PFA Climate Plus at My PFA. If you are unsure whether you have the right profile for your risk and portion of your savings in PFA Climate Plus, you can easily and quickly get help from the investment guide at My PFA. Here you can also change your investment profile. From 1 April 2025, the investment guide will be updated with the latest changes, but you can consult it already now to find out which investment profile is right for you.

3. Do I need to do anything in relation to the change?

No, the changes will happen automatically. If you are unsure whether you have the right profile and portion of your savings allocated to PFA Climate Plus, you can easily and quickly get help from the investment guide at My PFA, where you can also change your investment profile and the portion of savings that you want to allocate to PFA Climate Plus. From 1 April 2025, the investment guide will be updated with the latest changes, but you can consult it already now to find out which investment profile is right for you.

4. How do I choose PFA Climate Plus?

You can easily and quickly get help from the investment guide at My PFA, where you can also change your investment profile and the portion of savings that you want to allocate to PFA Climate Plus. From 1 April 2025, the investment guide will be updated with the latest changes, but you can consult it already now to find out which risk and portion allocated to PFA Climate Plus is right for you.

5. Can I have my entire savings in PFA Climate Plus?

Yes you can. You can easily and quickly change your profile and the portion of savings that you want to allocate to PFA Climate Plus by consulting the investment guide at My PFA. From 1 April 2025, the investment guide will be updated with the latest changes, but you can consult it already now to find out which risk and portion allocated to PFA Climate Plus is right for you.

6. Why does PFA Climate Plus have a lower expected return?

The stricter requirements for share investments in PFA Climate Plus mean that PFA Climate Plus can be expected to have a smaller investment universe than the rest of PFA Plus. This means that with the same investment risk, you should expect a slightly lower return and higher short-term fluctuations than in PFA Plus. In practice, however, the return can be higher, the same or lower.


If you have any questions or need advice, feel free to call us at +45 70 80 82 47