Climaider pension

Why you should switch to a sustainable pension fund

Danes have a total pension wealth of over DKK 3,000 billion. If those funds were invested correctly, they could really speed up the transition towards a more sustainable world.

However, there are certain things we ourselves are able to do to influence how our pension assets are managed.

As a private individual, you are able to decide who is in charge of managing your pension assets. Some pension companies have sustainability higher on the agenda and are actively investing in initiatives and organisations that contribute to the fight against global warming.

Danish pension funds investing in sustainability
Merkur Andelskasse/AP Pension
At Merkur, it’s possible to get a so-called Responsible Pension, where the money is invested sustainably. Merkur and AP Pension are customer-owned, which means that customers decide and there is a good opportunity for influence.

PKA Pension
PKA Pension is considered one of the best pension companies when it comes to investing in sustainable development. For several years in a row, they have taken first place on WWF’s list of climate pension companies, and have set a target of 10 percent of investments to be climate-oriented by 2020.

Teachers’ Pension Fund
The Teachers’ Pension Fund invests 6% annually or the equivalent of 4.1 billion. DKK, in sustainable forestry, including New Zealand, USA and South America. They expect to invest 8% of their assets in sustainable forestry by 2019.

PFA Pension
PFA Pensions is the largest of the four pension companies and manages pension funds worth 500 billions DKK. In 2016, they enrolled in their policy of not investing in companies that counter the COP21 agreement’s global greenhouse gas reduction goals. However, they do not invest as actively in sustainable transition as the other pension companies.