Biggest Danish Pension Fund Targets Climate With Green Product
Biggest Danish Pension Fund Targets Climate With Green Product
(Bloomberg) -- Denmark’s largest pension fund is offering a new product that gives customers the option of placing retirement savings in climate-focused investments.
PFA’s Climate Plus comprises asset classes from companies working on reducing CO2 emissions, combined with investments in projects such as offshore wind farms and sustainable properties, the fund said. The product, which will be made available to customers later this year, excludes oil, coal and gas investments.
PFA Climate Plus will, as a starting point, “emit 60% less CO2 than the MSCI World Index and be completely CO2-neutral in 2025 at the latest,” the pension fund said in a statement. The aim is to have a CO2-negative portfolio by 2030.
PFA said it expects returns to fluctuate in the product’s initial years, because there are fewer assets from which to choose. In the long term, Climate Plus “will have the same level of risk and return expectations as” other market returns-based products.
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To contact the reporter on this story: Nick Rigillo in Copenhagen at nrigillo@bloomberg.net
To contact the editors responsible for this story: Christian Wienberg at cwienberg@bloomberg.net, Frances Schwartzkopff
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