Stockholm (NordSIP) – Recognising its ability to pressure its investee companies to make a difference for the environment, Danish pension fund P +, with DKK135 billion in total savings, has announced a new responsible investments approach.
According to the chairman of the board of P +, Anders Eldrup, the pension fund has set the goal to achieve carbon neutrality within its investment portfolio by 2050. To this effect, P+ has joined the Net-Zero Asset Owner Alliance and has also announced the expected launch of a green investment pool in 2021.
At the same time, P+ also announced the decision to divest from Coal. The pension funds will exclude all coal companies whose turnover from coal-related activities exceeds 5% of the total, as well as all utility companies with more than 25% of their turnover on electricity from coal. P+ also announced the intention to divest from utility companies whose share of turnover derived from oil exceeds 30%. According to Eldrup, the exclusions will not only apply to listed shares, but also to bonds and unlisted investments.
The rest of the pension fund’s efforts focus on the adoption of a number of principles of increased openness aimed create transparency about the pension fund’s investments to its members and the public.
According to Eldrup, P+ will start therefore publish an overview of its investments in companies that are today among the most climate-damaging, together with a justification for each individual investment. The pension fund will also publish an annual ESG report and include information on active ownership in its reports, so that members can see how P+ is actively working to get the companies to prepare for the transition.