Denmark’s pension sector held DKK478bn (€64.1bn) in climate and environment related investments at the end of 2025, exceeding its DKK450bn target for 2030 five years early, according to Insurance & Pension Denmark (IPD), the Danish pensions and insurance association.
The total increased by 24% from DKK385bn a year earlier.
Of the DKK478bn, just over DKK175bn was invested in activities aligned with the EU taxonomy. A further DKK302bn was classified as sustainable investment under Article 2(17) of the EU’s Sustainable Finance Disclosure Regulation (SFDR).
The latter category covers climate and environment-related investments outside the scope of the EU taxonomy, including government and corporate bonds, certified properties and forestry assets.
An estimated 44% of the total was invested in Denmark, with the remaining 56% invested abroad in areas including renewable energy, energy infrastructure and climate technology.
The Danish pension industry made its green investment pledge at the UN Climate Action Summit in New York in 2019.
The pledge originated as a conditional commitment linked to UN Sustainable Development Goal 7 (SDG 7) and was intended to mobilise pension capital for the green transition while continuing to generate long-term returns for pension savers.
In 2024, IPD changed the measurement basis from SDG 7 to the EU taxonomy and Article 2(17) of SFDR, reformulating the pledge from an additional investment commitment to a DKK450bn total portfolio target for 2030.
Green transition not complete
IPD chief executive officer Kent Damsgaard said reaching the target did not mean the sector’s work on the green transition was complete, however.
“The green transition is a long-term effort, and green investments have faced headwinds in recent years,” he said, citing challenges in the wind and battery sectors.
Damsgaard said disruption to oil traffic through the Strait of Hormuz and heatwaves in Europe highlight the need for continued investment in Europe’s green energy supply, both to address climate change and improve energy independence.
“Climate change is a global challenge, and therefore green investments are too. Danish pension savers’ money helps finance the green transition both domestically and internationally, and at the same time, the Danish pension industry, with its green commitment, has inspired investors worldwide to make more green investments,” said Damsgaard.
IPD said it does not intend to set a replacement investment target but will continue publishing an annual assessment of the pension sector’s climate- and environment-related investments.
