Denmark’s AP Pension to invest 10% of portfolio in green transition by 2023

Danish pension company AP Pension has committed to having 10 per cent of its portfolio invested in the transition to a greener economy in 2023, it has revealed.

Following this, the firm will increase the share of its portfolio in green investments to 20 per cent by 2030.

These targets form part of its commitment to being climate neutral by 2050.

It noted that its strategy so far has been to focus on short- and medium-term “tangible” goals, such as increasing investment in the green transition and developing a fossil fuel strategy.

“With the accession of the Institutional Investors Group on Climate Change’s (IIGCC) Paris Aligned Investment Initiative, we commit ourselves to an even more long-term climate plan with sub-goals up to 2050,” commented AP Pension head of responsible investments, Sandra Metoyer.

“This naturally involves some challenges, as it is difficult to predict developments 30-years ahead. Our expectation is that a joint effort, where we lift the task together with other large investors in the IIGCC network, can support us in our work towards a climate-neutral investment portfolio in 2050.”

AP Pension has been making a focused effort to reduce the climate footprint of its investments, and it noted that the latest climate report showed its carbon emissions were among the lowest in the industry.

“We have come a long way in the last two or three years when it comes to sustainability and climate, where we invest, among other things, in terms of the UN's 17 world goals,” Metoyer continued. 

“We have also already come a long way in adapting our overall portfolio in relation to the goals of the Paris Agreement.

“Our latest climate report shows that our portfolio of listed equities and corporate bonds is associated with a potential temperature rise of 2.4 degrees in 2050, if the current composition of the portfolio remains the same. 

“With the support of the IIGCC's Paris Aligned Investment Initiative and their Net Zero Framework, we are committed to bringing that figure as close to 1.5 degrees as possible.”

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