Danish pension fund Pædagogernes Pension (PBU) is considering adding biodiversity to its impact-orientated private equity strategies, seeing the sector as closely connected to social outcomes that help empower women.
Johannes Bill Ladegaard, head of alternative investments at the DKK100bn (€13.4bn) pension fund for early childhood teachers, said: “Over the past decade, Pædagogernes Pension has committed approximately $300m (€260m) to impact-orientated private equity investments.”
PBU’s strategy focused on three key areas, Ladegaard said: financial inclusion, particularly microfinance; the green transition; and gender-lens investing.
“These are sectors where we see a strong alignment between positive social outcomes and long-term financial performance,” he said.
“As a pension fund representing early childhood and youth and educators, we are committed to investing in areas that promote inclusive growth and improve outcomes for women and children,” Ladegaard added.
A key investment in the strategy came in 2021, when PBU – whose membership is 90% female – was the cornerstone investor in southeast Asia-orientated SEAF Women’s Economic Empowerment Fund.
While PBU’s commitment to gender-lens investing and social impact remained the backbone of its strategy, Ladegaard said it was continually evolving.
“We might, for instance, in the future explore ways to incorporate biodiversity and nature-positive investing, particularly where these themes intersect with social outcomes and gender equity,” the alternatives chief said.
However, Ladegaard stressed that PBU was still in the exploratory phase regarding this theme.
“Biodiversity and nature-positive investing is still an emerging field, and we are closely monitoring how opportunities develop, particularly where they overlap with our existing focus on social impact,” he said.
Asked why adding this element might be the right next step in the strategy, Ladegaard said that as a pension fund for teachers of young children, PBU had a responsibility to think long term.
“Climate and biodiversity are acutely connected to social outcomes: when ecosystems are degraded, it is often women, children and vulnerable communities that are most affected,” he said.
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