Annual Report 2023 (eng) - Flipbook - Side 3
INDUSTRIENS PENSIONSFORSIKRING A/S ÅRSRAPPORT 2023
Introduction
A changing world brings constant new
demands – including for the pension
sector
In the end, 2023 turned out to be as dramatic as
was expected at the beginning of the year.
There's enough to worry about in an uncertain
world, but for the global economy at least, things
have gone better than feared.
There was no severe economic shock, and
despite continued geopolitical turbulence and
the wars in Europe and Gaza, large parts of the
financial markets developed satisfactorily. One
explanation is that European, and in particular
American, households maintained higher
consumption than expected. Inflation fell more
rapidly than expected, and listed share markets
have all had a solid year after a strong late
flourish in November and December.
However, uncertainty and challenges remain for
the financial markets and the European
economy. The higher interest rates will impede
growth in private consumption and the economy
as a whole, and it is too early to declare victory
in the fight against inflation. This will continue to
demand much attention from central banks.
Moreover, war and geopolitical turbulence are
still serious uncertainty factors, and they can
easily precipitate new economic implications
and put energy prices and supply chains at risk.
These are all major uncertainties for the financial
markets in 2024.
In 2023, both listed shares and bonds generated
satisfactory returns. On the other hand, many
unlisted assets were more impacted by the
higher interest rates prevailing throughout the
year. We at Industriens Pension could also feel
the effects, as unlisted shares, foreign
properties and some of our infrastructure assets
experienced a hard year. However, the total
portfolio ended with a positive return, carried
forward by listed shares and credit bonds.
The number of members who, via their
employers, pay contributions to the pension
scheme is at the same level as at beginning of
the year. Together with the positive returns,
contributions have increased members' savings
in Industriens Pension. In 2023 alone, total
savings increased by DKK 13.4 bn.
Administration costs also remained at a low level
in 2023. The financial ratio "Costs per member"
is currently DKK 262.
Extensive sustainability work
In the past year, work on sustainability and
responsible investment has been given much
focus at Industriens Pension. Again in 2023, we
approved new investments that contribute to the
transition to a more sustainable economy, and
during the year we set five-year sub-targets to
reduce carbon emissions on investments, and
ensure that our total investment portfolio is
carbon-neutral by 2050, and preferably sooner.
Industriens Pension was a particularly active
investor again in 2023, both in terms of voting at
general meetings and through dialogue
processes with companies. We collaborate with
other investors to influence companies in a more
responsible direction.
INTRODUCTION
We have also been working on expanding our
data basis regarding ESG issues in all our
investments, including unlisted assets. It is a
complex task, which will take several years to
complete.
Work on responsible investments is affected by
many factors, and the new international
regulations at several levels also play a major
role. Therefore, work on the EU Corporate
Sustainability Reporting Directive (CSRD), and
the Sustainable Finance Disclosure Regulation
(SFDR), will be in the spotlight for many years to
come.
Rating Danmark's award for the pension
company with the most satisfied members.
Industriens Pension was also awarded "Pension
Company of the Year 2023" by FinansWatch and
EY for solid returns over a number of years
combined with low administration costs. At the
end of 2023, Industriens Pension won the prize
for best bond investor among pension
companies across Europe at the annual IPE
European Pension Fund Awards.
Among other things in light of extensive
international regulation, our extensive work on
sustainability and responsible investment is
reflected in much of this annual report, in which
focus is on the general approach of Industriens
Pension to responsible investment and social
responsibility, as well as on our approach to
work in 2023.
In the sections on "Investment activities" and
"Serving as a good example", the report contains
information that is compulsory according to
sections 132, 132a and 132d of the Executive
Order on Financial Reports for Insurance
Companies and Multi-Employer Occupational
Pension Funds.
Significant awards in several areas
Looking more inwards, we are extremely
pleased with the recognition we have received
in several of the sector's most important awards
in 2023. FinansWatch, a financial news media,
and Wilke, a market research firm, lauded
Industriens Pension as the company with the
best reputation in the pension sector in 2023 for
the second successive year. We also won Epsi
3
