Danica Pension pledges to net-zero greenhouse gas emissions by 2050

Danica Pension has pledged to transition its DKK 400bn of assets under management to net-zero greenhouse gas emissions by 2050, as it becomes the 26th member of the United Nations-convened Net-Zero Asset Owner Alliance (AOA).

Launched in September 2019 during the UN Climate Action Summit, the AOA is an international initiative bringing together investors that are committed to transitioning their investment portfolios to carbon neutrality by 2050. The AOA’s action focuses on implementing the Paris Agreement, the main goal of which is to limit the rise in global average in temperature to 1.5°C.

Danica Pension believes that becoming a member of the AOA underpins its ambition to invest US 4.5bn (DKK 28.6bn) in the green transformation by 2023, US 7.5bn (DKK 47.6bn) by 2025 and US 15.1bn (DKK 95.9bn) by 2030. In the first quarter alone, Danica Pension increased its investments in the green transformation by 38 per cent from approximately US 1.6bn (DKK 10.2bn) to approximately US 2.2bn (DKK 14bn).The company is the fourth Danish asset owner to join the alliance.

It said that by addressing climate issues through corporate dialogue and voting at general meetings, it can, as an investor, help encourage or require businesses to transform their business on a scale and at a pace consistent with the Paris Agreement’s 1.5°C target. As businesses transition to low-carbon business models, the emissions produced in Danica Pension’s investment portfolio will also be reduced.

Commenting, Danica Pension CEO, Krogh Petersen, said: “As a pension company, our more than DKK 400bn assets under management can make a huge difference for the green transformation. That is our focus already now and will be for many years to come.

“Having long-term ambitions is a good thing but acting in a timely manner is even more important. That is why we significantly increased our investments in the green transformation in the first quarter this year, and we are going to develop individual milestones for our carbon footprint from our investments towards 2023, 2025 and 2030.”

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