This new announcement makes the Danes’ pension fund Denmark’s potentially largest green investor.
“We simply cannot afford not to – for two reasons. Firstly, it is obvious for all that the global climate needs a green transition and concrete action now. This is among others the reason why we already now make an announcement for 2025.
Secondly, the green transition will be a fantastic opportunity to create good returns over the next many years. This is driven by the fact that new business solutions for existing climate challenges must be found within many sectors. In ATP, we believe that the winners of the future think and act green. At the same time the climate challenges also represent a considerable business risk which can hit our investments and must therefore be offset. So economically, we cannot afford not to take action now,” says Bo Foged, CEO, ATP.
Climate footprints must be measured
Apart from the financial ambitions, ATP will also make demands on the companies in which ATP invests to report on their discharge of CO2. It must be measurable the extent to which they put strain on the climate and in this way ATP’s climate footprints from the portfolio will achieve its target of a CO2-neutrality in 2050 and 70% reduction in 2030.
Today’s announcement will over the next years be an important guiding star for ATP’s investment work and the approach will support the overall purpose to create a long-term value for all our 5,4 million members.
Work targeted towards making companies more green
ATP recognizes that the current climate crisis is an urgent challenge and therefore it is important to act on a large scale.
“To reach DKK 100bn in green investments in just a few years is – even for an investor the size of ATP – an ambitious challenge. We want to spend the money where the return is attractive and where a transition from black to green really matters. If we are to make a noticeable difference for the climate, and at the same time ensure good returns for our members, then we must also be willing to put the effort in those sectors that seriously strain the climate but who are willing to reduce their existing CO2-emmision and have the power to really execute on this,” says Bo Foged, CEO, ATP, and continues:
“It is important to dare to take those choices even if it means that we might make some not entirely green in green investments where the transition has already taken place. This does not really help the climate and often does not give as an attractive return.”
The ambitions are made under a number of conditions which can be found here
ATP’s climate ambitions in short:
- DKK 100bn in investments which support the green transition
- All portfolio companies report CO2-emission
- DKK 200bn in investments which support the green transition
- 70% reduction of CO2-emission for listed equities, corporate bonds and properties compared with the emission in 2018
- ATP joins the ambitions of being CO2 neutral – both as a company and through our investments and active ownership.