Industriens Pension has announced the implementation of a new benchmark, the MSCI Climate Action Indexes, for its foreign equity investments, emphasising companies with a clear focus on climate transition. The move is intended to align the pension fund’s portfolio with broader sustainability goals, particularly concerning climate change mitigation.
The new benchmark assesses companies based on their efforts to reduce carbon emissions and transition toward more sustainable operations. It is part of Industriens Pension’s broader strategy to reduce the climate footprint of its investments while maintaining competitive returns for its members.
According to Industriens Pension, this shift in strategy is designed to favor businesses that demonstrate strong commitments to meeting climate-related goals. Companies included in the benchmark are assessed not only on their current performance but also on their future plans to address environmental challenges.
Supporting Broader Climate Goals
“The new benchmark aligns very well with our desire not only to target investments in sectors with low CO2 emissions but also to focus on the challenging transition for companies with higher emissions. This approach allows us to contribute to a real reduction in greenhouse gas emissions while maintaining a full focus on generating solid returns,” says Morten Rask Nymark, Head of Equities at Industriens Pension (in Danish).
This initiative is part of Industriens Pension’s ongoing efforts to contribute to Denmark’s and the global community’s climate targets. The fund aims to achieve a carbon-neutral portfolio by 2050, aligning with international frameworks such as the Paris Agreement and the goals of the Net-Zero Asset Owner Alliance.
The introduction of a climate-focused benchmark complements other measures already in place within the fund, such as investing in green bonds, renewable energy projects, and companies with low environmental impact.
The pension fund has highlighted that the adoption of this benchmark will increase the transparency of its investment strategy. By focusing on clear and measurable sustainability metrics, Industriens Pension seeks to demonstrate accountability to its members and stakeholders while contributing to global sustainability efforts.
Industriens Pension has stated that the new benchmark will be regularly evaluated and adjusted as necessary to ensure its effectiveness in promoting sustainable development.
