Danish pension provider P+ has announced a DKK 400m investment in green Danish government bonds, designed to support the country’s green transition and are the first to meet the European Union's (EU) Green Bond Standard.

This commitment is aligned with the fund’s goal for 15 per cent of its investments to be climate-friendly by 2030 and “fits in very well as part of a diversified investment portfolio”.

P+ investment director, Jasper Riis, said that this target drives the fund's ongoing efforts to expand its portfolio of climate-oriented investments across various asset classes.

P+ also previously invested when the government issued its first green bond back in 2022.

According to Riis, the fund sees the bonds as a “good and safe investment in a broad portfolio” and, at the same time, said it makes sense for the provider to invest in bonds that are aligned with the EU taxonomy for sustainable activities and earmarked for green spending in the Danish state budget.

The sale of the bonds will specifically support projects such as renewable energy, greener transport and nature restoration.

This investment reflects a broader trend across Denmark and Europe as a whole, where institutional investors are increasingly turning to sustainable assets that meet EU standards.

A report from Insurance and Pension Denmark found that green investments in the Danish pension industry increased by 12 per cent in the past year, despite global uncertainty and political challenges, while Danica tightened its climate policy by adding 1,730 companies to its exclusion list of fossil fuel firms.

In Sweden, KPA Pension has set climate targets to achieve net-zero emissions in its asset portfolios by 2050, following the completion of its previous climate sub-goals.

Despite this broader trend, P+ noted that some companies that provide solutions for the green transition have faced political and economic challenges, creating an impression that the green transition is in headwinds.

However, the provider said that this hasn’t affected P+’s investment returns, with Riis explaining that P+ have put together a robust investment portfolio that has continued to perform well, even though some companies and sectors have been “hit by headwinds”.

“In fact, the investment profile P+ Sustainable, which is more exposed to climate-friendly investments, has performed on par with our main portfolio – and somewhat better than the average for the pension industry's sustainability-focused products over the past three years," he said.

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