Danish pension company Danica Pension has published its first report detailing how its investments potentially impact biodiversity.

Its analysis found that approximately two-thirds of the investments have a potentially high impact on various ecosystems and biodiversity via their operation.

In particular, they contribute to the loss of biodiversity through carbon emissions, pollution and overuse of natural resources.

Danica Pension also explored the extent to which investments were dependent on biodiversity and healthy ecosystems to produce goods and other services.

It found that a third of its investments had a potentially high dependence on natural resources, such as water, trees, plants and animals, as well as protection against storms and floods.

Overall, Danica Pension concluded that it was investments in the machine industry, the pharmaceutical sector, the energy sector and food processing that had the greatest effect and dependence on biodiversity.

"Although biodiversity data is immature and still under development, it is an important analysis that can guide us in our further work,” commented Danica Pension director, Søren Lockwood.

“Now we have to start mapping to what extent the companies actually affect and need biodiversity, and whether they handle it.

“It deals with everything from water consumption, CO2 emissions, waste and waste water management to pollution, protection of coastal ecosystems or raw materials.

“All the time, we want to build on top of that so that we can better handle investment risks, set the right biodiversity requirements for companies and set objectives in the area that together can help restore nature and support the green transition.”

Between now and 2025, Danica Pension will enter into targeted dialogue with 30 large global companies, with the goal of supporting them in starting to strengthen efforts to minimise the impact and manage the dependence on biodiversity in forest and marine areas, as well as improving reporting.

It will also develop a new biodiversity strategy for each new Danish property project and set requirements for biodiversity aspects for building materials.

"We must move to where biodiversity aspects can be measured at company level and throughout the supply chain, so that we can direct investments towards those who work seriously in the area,” Lockwood added.

“In the dialogue, we therefore emphasise that companies quickly begin mapping their specific biodiversity conditions and prepare for future requirements and reporting standards.

“It is a process that we want to initiate and, in this way, get companies to take responsibility for nature, which will also benefit our customers."

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