Earlier in the year Enable’s experienced IFA’s of Bishop’s Stortford had noticed that several Danish pension funds were all set on greener investment goals. Several of their pension funds have been taking measures to reduce the climate impact of their investments, setting new targets and excluding more companies from their portfolios.
The pension fund PenSam, which provides pensions for public sector employees, is to invest 10% of its portfolio assets linked to the energy transition by 2025, including such as renewable energy and green listed shares and bonds. Claus Jørgensen, CIO of PenSam, said of recent deals – buying to a wind farm in northern Sweden and investing in two solar parks in California. “The two investments are the starting point for more green and sustainable investments in PenSam. At the same time, we have turned down investments in fossil fuels as part of our strategy in recent years.”
Lærernes Pension, the Danish pension fund for teachers, has also excluded several companies engaged in coal production for energy, arctic drilling for oil and extraction of oil from tar sands. The pension fund said it would only invest in a company if no more than 5%, rather than 20-25%, of its turnover, came from coal production, arctic drilling, tar sands or weapons, among other criteria.
More Recently the FCA in the UK has set out its proposals to improve climate change disclosures by issuers and information to consumers on green financial products and services. They identify several priorities, which will provide a foundation for the FCA’s future work on climate change and green finance.
Andrew Bailey, Chief Executive of the FCA said: ‘We have an important role to play in creating an environment where firms can manage the risks from moving to a greener economy and capture the opportunities to benefit consumers.” If you are looking to think about greening your future financial planning enables’ IFAs can help you look at your options.