Denmark’s P+ said it is launching a new, separate sustainable pension option from next March, becoming the first of the country’s labour-market pension providers to follow what has become an established trend among commercial pension companies.
Announcing several changes to its pension product and membership service strategy, the firm – which was formed from a merger of the pension fund for lawyers and economists, JØP, and the pension fund for engineers, DIP – pledged to increase dialogue with scheme members in order to structure the fund around their preferences.
Kim Duus, chair of P+’s board of directors, said: “At the end of March, we will therefore also launch an extra sustainable investment pool, which you can choose if you as a member want an even higher level of sustainability than you already have today.”
He added that, next month, the pension fund would publish a plan for how it would work to lower the climate footprint of its portfolio over the next five years.
The announcement of the new climate-friendly pension option follows changes to the lineup on P+’s board back in April, which saw the appointment of Kathrine Ehnhuus, a campaign coordinator for climate lobby group Ansvarlig Fremtid (Responsible Future), as well as Duus as chair and three other members Helle Munk Ravnborg, Peter Falkenham and Peter Løchte Jørgensen.
The changes followed a member referendum on board appointments.
P+ also said it was launching its new product, P+ Livscyklus (P+ Life Cycle) at the beginning of November, giving members three different risk profiles to choose from.
Sustainable pension products have been gaining popularity in Denmark, with AP Pension becoming the first of the country’s main commercial pension providers to introduce such a product – AP Sustainable – over two years ago, followed by commercial firms PFA, Danica Pension and Velliv.
Denmark’s occupational pension providers can be divided into labour-market pension funds, such as P+, and commercial companies, such AP Pension and PFA.
The latter generally manage company pension schemes, whereas the former are set up by trade unions and employers as part of the collective bargaining system.
So far, only the commercial firms have launched separate sustainable pension options.
In April, Denmark’s biggest commercial pension fund PFA announced that its own sustainable product – PFA Climate Plus (PFA Klima Plus) – had attracted over DKK5bn (€672m) of customer savings.