Danish pension company, AP Pension, has adopted a new climate strategy that sets targets for CO2 reduction and increases its current targets for green investments.

As part of AP Pension joining the Paris Aligned Investment Initiative, which obligates AP Pension to achieve a climate-neutral investment portfolio by 2050 or sooner, the company has set several sub-goals to reach the goal in 2050.

Among other things, the interim goals are that AP Pension will reduce the climate footprint of its investments in shares and corporate bonds by 37 per cent by 2025.

Meanwhile its subsidiary, AP Ejendomme, will reduce CO2 emissions by 52 percent for properties in operation.

The targets are set based on the emissions in 2019, which is a requirement in the net-zero co-operation.

The company has also increased its targets for green investments, with 25 per cent of the total assets under management to be green by 2030.

This marks a 5 percentage point increase from the previous target of 20 per cent.

"Ambitious targets are necessary if we are to succeed in becoming climate-neutral by 2050,” commented AP Pension CEO, Bo Normann Rasmussen.

“That is why we are also proud that we are now setting the most ambitious targets for green investments in the industry, where with our billion-dollar investments we are helping to drive the world in a greener direction.

“It plays into the extensive green transition that is happening globally, and which is necessary to achieve the goal of climate neutrality in 2050.”

As part of the work on climate, AP Pension will also make greater demands on its external managers and its administrators must ensure that their investments are compatible with AP Pension's ambitions.

“We have adopted a strategy for climate-related active ownership, where we enter into a dialogue with the companies that have a CO2 emission that is above the average in the industry in question,” Rasmussen added.

“We need to see a credible plan for a green transition and reduction of CO2 in the company. The dialogue can gain extra weight when it is carried out together with other investors, because we cannot do it alone.”

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