Denmark has committed itself to reducing its CO2 emissions by 70 per cent in 2030. This is the Danish Government’s climate target. If it is to be met, it will require a solid financing and a shared effort from politicians, companies and citizens.
At ATP, we are continually assessing how we can create good returns for our members while at the same time promoting the green transition via responsible investments.
This is why we, among other things, invest in green bonds - i.e. bonds that finance climate-friendly investments. This is a market that has developed alongside the increasing focus on sustainable investments.
“At first, we were just dipping our toes and bought some green bonds to learn more about what kind of asset this was, but we quickly discovered that it was a good and sustainable investment asset. Therefore, we have on an ongoing basis been increasing our holdings of green bonds and today we have invested approximately 25 bn Danish kroner in them,” says Jan Ritter, Head of Hedging & Treasury.
Responsible investments require good partnerships
When it comes to investments, not all that is called green is actually green. At ATP, we are very aware of the dangers of greenwashing. Therefore, we continue to be in dialogue with the issuers of green bonds so that we can ensure that we are investing sustainably.
The decisive factor for us is knowing what we are buying and what climate-friendly projects we are part of financing.
We have good partnerships with, among others, the European Investment Bank (EIB) which has a positive view on us when we buy green bonds from them and require information and openness.
“ATP has become a strategic business partner in the development of best practice when it comes to how to handle green investments,” says Aldo M. Romani, Head of Sustainability Funding at the European Investment Bank.
In 2007, the EIB issued the world’s first green bonds - today, they are one of the largest issuers of such bonds. Via the green bonds, they have helped to promote the development of climate-friendly projects around the world. At ATP, we have invested in several of these projects, such as, for example, the establishment and operation of a solar park and wind park in India, solar parks in Mexico and a floating wind park in Portugal.