Danica Pension has set new sub-targets for its investment CO2 emissions in 2025, following its commitment to have CO2-neutral investments by 2050.

The Danish pension provider originally set its 2050 target in June 2020. Its new sub-targets entail an extensive reduction of CO2 in key sectors where the transition is central to pave the way for the Paris Agreement.

Danica Pension CEO, Ole Krogh Petersen, said the company has already almost tripled its investments in the green transition between 2019-2020 from DKK 10bn to DKK 27bn. It has also “sharply increased” its active ownership, with the aim of pushing the companies it already invests in in a more sustainable direction.

"It is good to have ambitions for the long term, but even more important to act in a timely manner. Our ambition is to contribute to real economic change and contribute to the green transition. We believe that if we are to help solve the challenge of climate change, we must also support the transition in the sectors that are the key to change,” he said.

The areas in which Danica Pension will focus on for its 2025 targets include the energy supply, transport and steel sectors. Danica Pension's ambition is to reduce CO2 emissions in these key sectors by between -15 per cent and -35 per cent, compared to the level in 2019 when Danica Pension's equity and credit portfolio's CO2 emissions were 21 per cent below the worldwide MSCI index.

Krogh Petersen said the sectors represent the “majority of global CO2 emissions, and therefore they are key sectors if we are to succeed in limiting global warming and living up to the Paris Agreement".

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