Denmark’s PFA will tighten the requirements for investments in its PFA Klima Plus product from 1 April 2025.

The change will see the product not only exclude oil, coal and gas companies but also companies with strong ties to these sectors. With the changes, the return in PFA Klima Plus is expected to be slightly lower and have slightly greater short-term fluctuations than in the broad PFA Plus product.

Since the launch of Klima Plus in 2020, PFA has created common ground rules for sustainable activities and investments, including getting companies to report on their climate footprint, partly driven by EU regulation. PFA would like to utilise this for the benefit of the increasing number of customers who opt to save in Klima Plus.

"Improving the data basis allows us to take a more quantitative and objective approach when we put together the investments in the PFA Klima Plus portfolio. We believe this is the right way to go in order to create a strong, transparent and climate-focused product for our customers,” PFA investment director, Kasper A. Lorenzen, said.

“Of course, we are aware that the more data-driven framework also limits our ability to shape and compose the portfolio. Focus requires selection, and one of the consequences is that in future we will not only be screening out oil, coal and gas companies, but also companies that are highly dependent on this sector.”

According to Lorenzen, strengthening the product’s climate ambitions does mean that in future the same returns as in the other PFA Plus products cannot be promised.

"We still strongly believe that climate considerations can go hand in hand with a good long-term return for our customers, but as we are increasing our climate ambitions, it may affect the return slightly, as our opportunities to diversify our investments will be narrowed,” Lorenzen explained.

He added that in 2025, Klima Plus customers will benefit from new investment profiles with an increased share of equities, just like customers in PFA Plus. According to Lorenzen, this will strengthen the return potential, and therefore a typical customer in PFA Klima Plus will be able to expect a higher return overall than today.

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