Velliv has issued a call for more investors, companies and governments to put money into the fight against climate change, homing in on the need for more government-backed investment opportunities – also known as blended finance.
Anders Stensbøl Christiansen, chief investment officer of the DKK300bn (€40.2bn) mutual pensions firm, said: “With our participation at COP28, we encourage more investors, companies and governments to join the journey.
“More capital will speed up the green transition,” he said in a statement.
Velliv said it expects to invest a significant amount in impact investments in the next few years.
“To make that happen more blended finance is needed to fit institutional investors risk profile,” the firm said.
Velliv said it had already invested in funds focused solely on impact investments as well as in green and sustainability bonds “with clear frameworks for driving positive environmental and social impacts”.
“In collaboration with partners such as the World Bank Group, Velliv has helped to pioneer innovative structuring in impact bonds where the investment return is directly linked to a positive outcome in terms of emission reductions,” the Copenhagen-based institution said.
However, the financial industry was still facing the problem of a lack of high-quality ESG data, it said, adding that a global standard for ESG data was needed.
Stensbøl Christiansen said: “Velliv wants not only to further accelerate our own climate goals but also advocate for actions that contribute to increasing the pace of the green transition.”
The pension provider said it wanted a faster phase out of fossil fuels and would only invest in upstream oil and gas companies and utility companies with credible transition plans in line with the Paris Agreement.
“Velliv is also calling on governments to stop approving new oil and gas fields and new coal mines, and for financial institutions to restrict access to capital towards new oil, gas and coal exploration,” it said.
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