PensionDanmark has highlighted transparency as “crucial” to climate engagement efforts, after successfully encouraging a US-based utility company to publish future emissions intensities targets and to collaborate on climate efforts.

The pension provider intensified its climate efforts in 2021 by assessing the climate efforts of the utilities companies in which it holds the largest positions in its portfolio of sustainable listed companies, using tools such as Transition Pathway Initiative (TPI).

In doing this, it found that whilst a US-based utility company had a target to reduce its carbon emissions intensity by 67 per cent by 2025, based on a 2005 baseline, although it could not identify any goals after 2025.

This formed the basis for an engagement call, which revealed that the company plans to phase out remaining coal assets relatively soon, increase the amount of solar of its total energy capacity, and invest in green hydrogen.

This call also allowed PensionDanmark to gain “a better understanding of their efforts", making it "better equipped to assume an emission reductions rate towards 2030".

PensionDanmark also encouraged the utlity company to publish targets for future emissions intensities after 2025 and to collaborate with initiatives such as TPI to promote transparency.

More broadly, the pension provider has committed to continuing its efforts to support a sustainable society in 2022 and to continue its active ownership efforts, with TPI expected to be "an important asset in this endeavour".

PensionDanmark has previously backed a number of climate targets and initiatives, including committing to net-zero alignment by 2050.

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