Danica Pension to invest in DKK 50bn ‘green transition’ assets by 2023

Danica Pension is to invest DKK 50bn in ‘green transition’ assets by 2023, bringing its target forward by two years.

Publishing an update on its climate ambitions, the pension provider said that if it reaches its new target, then its investments in the green transition will increase fivefold in the next four years. Its motivation for bringing the target forward is because the existing 2023 target of DKK 30bn has already been reached.

Investments in the green transition cover companies, foundations or projects that contribute to achieving the goals of global climate ambitions. It is an important step on the way to achieving its long-term goal of having invested at least DKK 100bn in the green transition by 2030 and having CO 2 -neutral investments by 2050.

Commenting, Danica Pension CEO, Ole Krogh Petersen, said: “Action is needed here and now if we are to slow down climate change before it is too late. That is why we are now raising our ambitions in the short term. We have shown that we put action behind words, because since 2019 we have more than tripled our investments in the green transition to DKK 32.9bn today. We have done this at the same time as our customers have received one of the best returns on the market in terms of costs.”

Some of the investments that Danica Pension has made that contribute to the green transition include approximately DKK 17bn in green bonds and more than DKK 800m in Sweden’s Northvolt, which supplies batteries for electric cars.

“Tighter climate regulation and increased demand for green solutions will move more companies towards greener alternatives, and the recent energy crisis also exacerbates the need to expand renewable energy. Those movements are expected to give us attractive investment opportunities, so I am convinced that we can deliver on our new climate goals and at the same time create an attractive return for our customers,” Krogh Petersen said.

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