Corporate social responsibility 2020 - Flipbook - Page 8
INDUSTRIENS PENSIONSFORSIKRING A/S
RAPPORT OM SAMFUNDSANSVAR 2020
Climate profile of investments
Climate change is being debated in all parts of
society and also at Industriens Pension. It is one
of the most important societal challenges of our
time. Local temperature changes are already
impacting a wide range of areas, from housing,
food, fauna and biodiversity to the global
economy.
As a responsible long-term investor, Industriens
Pension has been working on integrating
climate aspects into the investment process for
Table 1
a number of years in order to comply with the
goals of the 2015 Paris Agreement. We
approach this in several ways.
As an active owner, we engage in dialogue with
the companies in which we invest on how they
can reduce their carbon emissions.
For example, Industriens Pension does not
invest in mining companies and/or oil companies
in which more than 5% of oil production is based
on tar sand, because this form of production has
a considerable climate impact, and there is no
prospect of improvement.
Last, but not least, we are continuously seeking
out new investment opportunities that support
the green transition while yielding an attractive
risk-adjusted return. Our investment in solar
farms with Better Energy is a good example of
this.
Climate change not only brings new investment
opportunities related to the green transition and
a shift towards a low-carbon economy; it also
exposes and increases the risks of existing
investments.
Climate partnership reporting
Unit
2020
2019
Carbon footprint from investments
Carbon emissions from investment assets
Tonnes
Carbon footprint
Tonnes/USD
mill. sales
492,855
617,964
54
84
Active involvement in investments
Active ownership
Described in the “Active ownership” section
Sustainability of property investments
Described in the “Sustainable properties”
section
Sustainability of business models
Commitment to the Paris Agreement
RESPONSIBLE INVESTMENT
Described in the “Climate and the environment”
section
Climate change may have a direct negative
impact on the value of our investments. For
example, increased amounts of precipitation
may reduce the value of a property, and more
frequent natural disasters may affect the market
value of companies in which we have invested.
Climate partnership
The pension sector has entered into a climate
partnership with the Danish government and
committed to a common goal of investing an
additional DKK 350 bn. in the green transition by
2030.
Industriens Pension's share of investments in the
green transition has reached DKK 12 bn.2. This
means that Industriens Pension is on track with
our plan to contribute to the common goal.
In addition to calculating our green investments
in terms of DKK, we also measure whether our
investments fulfil our ambition for lower carbon
emissions. Each year, we measure the total
carbon emissions and carbon footprint from our
share portfolio.
In our future reporting, Industriens Pension will
use the model agreed with the sector in
connection with the climate partnership.
Climate impact of members
Society's view on climate issues may also
potentially involve financial risks for investors
such as Industriens Pension. For example, coal
companies are likely to provide lower returns
because the demand for coal energy will fall in a
market with alternative energy and a societal
ambition to shift to a low-carbon economy.
Members can keep up to date on how
investments of their pension assets are helping
to reduce global carbon emissions, water
consumption and energy consumption, while at
the same time making a positive contribution
with green power from Industriens Pension’s
investments in renewable energy.
Consequently, our work on integrating climate
aspects into our investment processes focuses
on climate-related financial risks as well as on
new opportunities to provide good and green
returns.
At present, Industriens Pension expects that, as
a minimum, we will double our investments in
the green transition to a level of more than DKK
30 bn. up to 2030. We are considering further
goals for our investments in order to contribute
Source: Klimapartnerskabsrapportering 2020
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