Conditions for climate ambition
ATP’s climate ambitions are set up under the same overall framework as the commitments in the Forsikring & Pension (F&P) sector.
F&P commitments are as follows:
The commitments submitted in the Danish F&P sector are conditional and based on an expected market situation towards 2030. The commitments are conditional by the following:
- Market conditions (that there are sufficient green investments and that they create a good return)
- Company-specific conditions (that the development in pension contributions continue in the expected scope and that the guaranteed pensions do not force the companies to change investment allocation)
- Political conditions (that socio-economic framework conditions continue to support the green transition, making green investments relatively attractive and less risky)
Significant deviations from the conditions mentioned may influence the investments in green assets. This is in accordance with the pension companies’ primary purpose and duty to promote economic security during retirement.
Additional conditions related specifically to ATP:
The suggested climate ambitions do not change the business model for ATP Lifelong Pension (Livslang Pension) or the basic strategy for the hedging- and investment portfolio.
- The work to achieve the climate ambitions are within the frames of prudent person and the requirement that ATP must invest its assets in the best interest of its members.
- Changes in for instance market conditions, hereunder interest rate fluctuations, can cause a reassessment of ATP’s climate ambitions.
- The ambition of green investments is encumbered with uncertainty, among others because the size of ATP’s balance is sensitive to changes in the interest rate level.