Danish PFA Pension has decided to invest €180m, or DKK 1.3bn, in green bonds issued by the Dutch government, in order to help the Netherlands achieve its climate goals.

The funds from the bonds will go directly to green projects which will contribute to a green transition for the state and is certified by the Climate Bond Initiative which ensures that the projects have a positive impact on the environment.

According to PFA CIO Henrik Nøhr Poulsen, green investments are increasing in demand and are therefore expected to generate value for pension savers on both the account of the climate and retirement savings.

“Sustainability and accountability have become an integral part of the way we invest. And in relation to the transformation currently underway to limit the temperature increases, it is important that we, as a long-term investor, make a positive contribution to the green transition and help to back up the Paris agreement and the UN's world goals.

“We are doing that with this investment in green bonds, where there is a good balance between risk and return,” Poulsen said.

The bonds will finance and support projects which are linked to five of the UN’s Sustainable Development Goals (SDGs) – the goal for renewable energy (SDG 7), energy efficiency (SDG 7 and 11), clean transport (SDG 9 and 11) and climate adaptation and water (SDG 6 and 13).

PFA's total investments in green renewable energy totalled DKK 8.6bn (€1.15bn) in 2018.

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