Geopolitical uncertainty, shifting global power dynamics and climate pressures have made responsible investment more complex but more critical than ever, according to AkademikerPension’s 2025 responsible investment report.

The Danish pension fund highlighted that 2025 was marked by war in Europe and the Middle East, as well as increasing strain on human rights and the global climate agenda, all of which were reshaping how long-term investors assessed risk and responsibility.

Despite this backdrop, AkademikerPension said it maintained a strong focus on responsible investment while managing DKK 164bn on behalf of more than 178,000 members.

The report emphasised that responsible investment was now deeply embedded within its strategy, rather than being treated as a standalone consideration, with environmental, social and governance (ESG) factors integrated across all asset classes and geographies.

In particular, the pension fund pointed to the growing influence of geopolitics on investment decision-making, noting that investors were increasingly required to balance climate goals, human rights and governance considerations with issues such as energy security, defence and economic resilience.

As part of this evolving approach, AkademikerPension confirmed it had adjusted its stance on defence-related investments in 2025, supporting initiatives aimed at strengthening European strategic resilience, including participation in a new defence-focused investment fund.

The report also underscored the importance of active ownership as a key tool for driving change, with the fund conducting 1,851 company engagements across 360 firms during the year, spanning climate, governance and social issues.

On climate, AkademikerPension said it had reduced the carbon footprint of its investment portfolio by 51 per cent since 2019 and increased the share of climate-friendly investments to 16.8 per cent by the end of 2025.

However, it warned that global progress towards climate targets remained under pressure, reinforcing the need for investors to maintain ambitious decarbonisation goals and actively support the transition in high-emitting sectors.

The fund also highlighted its use of exclusion as a last resort, with 1,019 companies and 41 states excluded from its investment universe due to breaches of its responsible investment policies or international norms.

Looking ahead, AkademikerPension said its priorities for 2026 would centre on strengthening active ownership, navigating geopolitical fragmentation and supporting Europe’s strategic independence, while continuing to balance long-term returns with sustainability and societal impact.

AkademikerPension investment director, Anders Schelde, stressed that responsible and active ownership was becoming “more important than ever” in an increasingly complex global environment.

He added that the fund would focus on using its influence “consistently and clearly”, and would be willing to take decisive action even amid political and market uncertainty.

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