Best sustainability reporting by an asset or fund manager, large: PensionDanmark

Extended coverage and additional detail saw PensionDanmark rewarded in the Environemtnal Finance Awards for its enhanced sustainability reporting.

The Danish pension fund for the labour market manages about €40 billion ($42 billion) in assets.

In its most recent annual sustainability report, in 2021, it increased the extent of its portfolio covered by greenhouse gas emissions reductions reporting to about 65% and an extra six asset classes.

It reported alignment to the EU Taxonomy of sustainable activities for four asset classes.

The fund reported on 14 indicators outlined by the EU's Sustainable Finance Disclosure Regulation one year ahead of the mandatory period for its listed equity portfolio.

In addition, it launched a gender diversity code and a biodiversity code for its partners and suppliers in the real estate sector.

Torben Möger Pedersen, CEO of PensionDanmark, told Environmental Finance: "I am very proud of our pioneering work that sets an example for both domestic and international peers in terms of transparent and reliable reporting.

"We have already made the first calculation of climate footprint from our portfolio of Danish mortgage bonds which will lift the coverage of our emission accounts to 80% of AUM.

"We will also work on reducing the climate footprint of our investments, among others via active ownership and company engagement both directly and indirectly, via Climate Action 100+, IIGCC, Net Zero Asset Owner Alliance and [asset manager and engagement provider] Federated Hermes.

"Lastly, we will keep on investing in climate-friendly technologies and green infrastructure, which we consider pivotal in supporting the green transition and even more important in the present geopolitical situation where Europe needs to get rid of its dependency of Russian fossil fuels."

Pedersen also emphasised the need for governments to deliver on their commitments to ramp up spending on renewable energy.

"We engage in a range of stakeholder dialogues, particularly how private investors can become involved in creating new and innovative solutions through Public-Private-Partnerships (PPP)," he added. "We hope that governments will live up to the Esbjerg Declaration on building an extra 150GW of green offshore wind power in the North Sea and reducing the red tape in the approval process."