PenSam manages eight investment portfolios for different pensions schemes in Denmark, only one of which, Fleksion, is still open. The portfolios of the seven closed plans consist of guaranteed pension products with a low-risk capacity and a medium investment horizon as the members retire, while Fleksion’s has a high-risk capacity since it is an unguaranteed pension product. It also has a long investment horizon as the members have a younger profile. The closed funds’ portfolios are hilghy liquid and have a substantial allocation to AAA-rated Danish government bonds.

PenSam has committed to a climate objective of reducing CO2 emissions by a minimum of 55% by 2025 and achieving net zero by 2050. This commitment is made on behalf of its 500,000 members and broader society through the fund’s participation in the Paris Aligned Investment Initiative. Additionally, PenSam aims to dedicate 20% of its total assets under management to green investments by 2030 in line with the EU taxonomy.

At the start of 2024, PenSam switched benchmarks and now measures listed equities against the S&P Global Budget Climate Index. This change marks a strategic decision to adopt a climate benchmark with a more sector-neutral portfolio. PenSam has adjusted the climate benchmark to underweight traditional energy companies by 90%. The new benchmark also underpins PenSam’s climate targets with a 70% reduction in CO2 emissions compared to the parent benchmark and an annual target of reducing emissions by an additional 7%.

For many years, PenSam has contributed to climate solutions through investments in renewable energy, such as solar, wind, and hydropower projects. In recent years, it has expanded to invest in the next generation of renewable energy projects with impact investments in areas like power-to-x-projects. By mid-2024, PenSam’s green investments totalled nearly €1.75bn, of which approximately €600m committed to green infrastructure and a further €530m earmarked for 2025.