Stockholm (NordSIP) – PFA Pension, Denmark’s largest pension fund, announced the introduction of PFA Climate Plus, a sustainable pension product that allows customers to place their retirement savings in specially selected climate-focused investments.
At its inception, the carbon footprint of PFA Climate Plus will be 60% less than the MSCI World Index. The goal is for investments in the PFA Climate Plus portfolio to be CO2-neutral by 2025 at the latest so that by 2030 it can be CO2-negative portfolio by 2030.
To this end, the PFA Climate Plus portfolio will invest in companies that actively work on reducing the world’s CO2 emissions and having a positive impact on the climate. The portfolio will also invest in green assets and selected projects such as offshore wind farms and sustainable properties. PFA has blacklisted oil, coal and gas from this portfolio.
“As Denmark’s largest pension company with more than 1.3 million customers, PFA has a special responsibility to contribute to a sustainable development of society. The investment of pension savings is one of the most significant ways in which an individual can make a difference. In support of this, PFA wishes to take the lead and – together with the customers – take part in accelerating the sustainable transition,” Group CEO Allan Polack says.
PFA explains that long-term return expectations will be the same. It argues that the Climate Plus portfolio will have the same level of risk and return expectations as the overall market rate product, PFA Plus. Nevertheless, due to the reduced investment universe, the pension fund warns that returns may fluctuate more in isolated periods.
“With PFA Climate Plus, we wish to set a new standard for sustainable pension investments to counteract the vast climate changes, which are a cause for concern for many of our customers. At the same time, we want to make it as easy as possible for the individual customer to decide how much of the savings the customer wishes to place in this especially climate-focused pension portfolio,” Polack adds.
PFA plans to give its customers access to PFA Climate Plus during the summer of 2020.