Annual Report 2023 (eng) - Flipbook - Side 85
Annex 1
To what extent were the environmental and/or social characteristics promoted by this financial product met?
Industriens Pension's product considered the environment and climate change. Consideration for climate change was
promoted by investments supporting the goal of the 2015 UN Paris Agreement to limit the global temperature rise to 2
degrees Celsius and close to 1.5 degrees Celsius above pre-industrial levels. Industriens Pension regularly sets subtargets for reducing the investment portfolio's emissions of greenhouse gases to ensure neutral emissions from
investments by 2050. In 2023, the first sub-targets were established. The objective is to reduce the climate footprint of
the portfolio of listed shares, corporate bonds and directly owned properties by at least 29% from 2019 to 2025. In 2024,
the next sub-targets will follow up to 2030. The reduction targets will include several asset classes as the data basis for
carbon emissions becomes available.
The objective of continuously reducing the climate footprint of the investment portfolio was primarily established by
utilising active ownership in the companies we invest in on the basis of a principle of proportionality. This means that we
have been in dialogue with the companies in which we have the largest investments and where we could maximise the
impact of our efforts. We engaged in dialogue with, and voted at, general meetings of portfolio companies to promote
their transition to a sustainable society. We excluded companies for which we assessed that a sufficient transition of their
activities would not be possible. This applies for all coal mining companies with revenues from thermal coal mining, as
these have been assessed to have a significant adverse impact on the environment and climate as their business model.
This also applies for oil companies where more than 5% of revenues come from extraction from tar sand.
Furthermore, we focused on investing directly in solutions that help to drive the transition to a low-emissions society,
such as investments in renewable energy and sustainable construction. Since 2020, a minimum requirement in
Industriens Pension's strategy for property investments has been that Industriens Pension's new buildings must be
sustainability certified up to at least DGNB Gold standard. Furthermore, efforts are being made to classify the existing
fully owned properties in the portfolio to gradually improve their sustainability.
Industriens Pension also promoted social characteristics by investing in companies that respect international standards
and conventions for social responsibility. These characteristics include compliance with fundamental human rights and
labour rights. Moreover, we do not accept bribery, corruption or aggressive tax planning from the companies and
foundations in which we invest.
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