Corporate Social Responsibility 2021 - Flipbook - Page 9
INDUSTRIENS PENSIONSFORSIKRING A/S
2021
CORPORATE SOCIAL RESPONSIBILITY REPORT
HIGH RETURNS ON A RESPONSIBLE FOUNDATION
In 2021, a new calculation method was introduced
and a new data supplier was selected. The reason
was that, in future, Industriens Pension wants to
report on the climate footprint of its portfolio in
line with the model agreed with the rest of the
pension and insurance sector as part of the
government’s climate partnership. Consequently,
commenting on the figures for 2021 in relation to
other years is meaningless, as data from previous
years are not calculated according to the same
method and data basis, and consequently are not
comparable. From next year, comments on
developments in the portfolio climate footprint
will be possible again. For reporting on 2021, see
the annex on key figures to this report.
Responsibility is rarely black or white
Last year saw entry into force of the EU taxonomy
for sustainable investment. The taxonomy is
based on existing standards, and Industriens
Pension hopes that the taxonomy will become a
unifying force in reporting and calculation models.
However, the taxonomy also poses a number of
challenges and dilemmas.
As described in the fact box, the taxonomy
includes six overall environmental objectives,
making it a relatively narrow framework. All else
being equal, this means that the quest for
taxonomy-eligible investments will run up the
price of these assets, potentially resulting in a kind
of bubble.
Table 2
EU taxonomy
New EU regulation in the form of a classification
system, a so-called taxonomy, aims to provide
more clarity and transparency with regard to
investments being categorised as green. In its
final form, the taxonomy will contain screening
criteria for a total of six climate and
environmental objectives: climate change
mitigation,
climate
change
adaptation,
sustainable use and protection of water and
marine resources, transition to a circular
economy, pollution prevention and control, and
protection and restoration of biodiversity and
ecosystems. So far, criteria have only been
developed for the first two objectives.
The result of shifting away from investments that are
taxonomy-ineligible can be that “brown”
investments - representing the greatest potential for
significant carbon reductions to benefit the climate will not receive the capital injections required to
implement this transition.
To start with, data on private investments will be
very limited, and this poses another major challenge
for investors, as there are numerous examples of
companies and energy infrastructures in the private
investment universe with a substantial positive
impact on climate sustainability.
Carbon footprint from investments
2021
Carbon emissions from investments (tonnes)
Carbon footprint (tonnes/mill. DKK invested)
Percentage of taxonomy-eligible investments (%)
752,406
8.6
16.6
Note: The percentage of taxonomy-eligible investments covers listed investments as well as investments in property and
infrastructure. Thus, the majority of unlisted investments (private equity) is not included in the calculation for 2021.
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