Denmark’s AkademikerPension announced it is accelerating its climate investment plan, nearly doubling its previous 2030 target allocation to environmentally-friendly investments, such as shares in renewable energy and electric vehicle companies.
The pension fund said last week its board had set a new goal for 22.5% or more of its investments to be in this type of asset by that point – which in absolute terms amounted to almost DKK50bn (€6.7bn) – up from its previous target to have at least 12% of its portfolio in green investments by 2030.
Jens Munch Holst, chief executive officer of AkademikerPension, said: “It is a really ambitious goal that we are presenting here. But if we are to achieve the goals of the Paris Agreement, all companies – large and small – will have to have ambitious goals.”
At the end of 2020, the DKK138bn pension fund had DKK8bn invested in what it termed climate-friendly investments, according to its responsible investment report, in which it said these included shares in Danish energy firm Ørsted, Spanish solar energy company Solaria and electric car firm Tesla.
Munch Holst said the pension fund – which covers mainly public-sector employees including upper secondary-school teachers – hoped its new, escalated climate target would send a message to companies that they should have “serious climate goals if we are to invest in them.”
AkademikerPension also announced its board had introduced a new 2025 climate goal that at least 15.3% of its investments had to be green by that point, adding that green bonds were one area in which it expected to see significant market growth.
The pension fund’s CIO Anders Schelde said: “It will be a huge market, so we have more to choose from.
“And we will also invest more in unlisted assets such as wind and solar energy, while trying to make our property portfolio more climate friendly,” he said.
Companies that failed to keep up with the green transition were becoming less attractive investment options, Munch Holst added.
“Conversely, the companies that set ambitious climate goals are only becoming more and more attractive regarding the future,” he said.