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Lægernes Pension (Danish Medical Doctors’ Pension Fund)

Initial target disclosure: September 2022

Portfolio level

Portfolio level – Portfolio decarbonisation reference target

Baseline date: Holdings as of 31 December 2019

Baseline performance:

  • Listed equity: 5,95 tCO2e/DKKmn
  • Listed corporate bonds: 18,90 tCO2e/DKKmn
  • Real estate: 12 kgCO2e/owned m2

Target year(s): 2025, 2050

Target(s): Lægernes Pension has adopted a net zero target for 2050. In order to achieve the target we have set an interim target for 2025. By 2025 we target reductions of:

  • Listed equity: 30% reduction (tCO2e/DKKmn)
  • Listed corporate bonds: 25% reduction (tCO2e/DKKmn)
  • Real estate: 55% reduction (kgCO2e/owned m2)

Baseline and 2025 targets are based on scope 1 and 2. We intend to include scope 3 emissions over time.

GHG scopes included: Data coverage for scope 1 and 2 emissions:

Equities: 98%.

Corporate bonds: 58%

Real estate: 83%

Scope 3: To be included at a later point.

Asset classes in scope: Listed equity, listed corporate bonds, and real estate (Danish properties, ownership ≥25%). The 2023 target will be published for an additional asset class, infrastructure.

Net zero scenarios/methodology: Methodology is based on AOA Target Setting Protocol.

Portfolio level – Investment in climate solutions target

Quantitative target

Baseline date: Holdings as of 31 December 2021

Baseline performance: 1.7bn USD (approx. 11bn DKK).

Assets classes currently included: Listed equities, listed corporate bonds, sovereign bonds, infrastructure, European real estate

Target year: 2030

Target: 15% of portfolio in 2030. By 2030, 15% of the investment portfolio (AUM) is to be invested in line with one or more of the six environmental objectives of the EU taxonomy. The commitment will mark an increase of at least 50% by 2030 compared to the investment level as of end 2021.

Methodology: The definition of green investments is based on the EU taxonomy for sustainable activities (environmentally sustainable economic activities) and the European green bond standard.

For the equity, corporate and sovereign bond portfolios, the proportion of green investments, is estimated using alignment data from MSCI and data on green bonds from Bloomberg, respectively.

For the infrastructure portfolio, only the proportion of eligibility is estimated. The estimate is based on the proportion of assets in the renewable energy sector.

For the European real estate portfolio, alignment is based on data from relevant asset manager in accordance with the criteria stipulated in the Commissions Delegated Act (EU) 2021/2139.

Asset level – Engagement threshold target

Approach: Lægernes Pension engages in dialogues with our investment companies through external partners.

Proxy voting is executed through ISS-ESG.

On climate specifically, Lægernes Pension engage with high emitters, through the international investor network Climate Action 100+.

Additional information

Fossil fuel investment: Lægernes Pensions fossil fuel policy includes investment restrictions on fossil fuel exposure. Thresholds are:

  • Extraction of thermal coal: >1% of revenue.
  • Energy production of thermal coal: >50% of revenue.
  • Extraction of oil and gas from oil sands: >5% of revenue.
  • Arctic oil and gas extraction: >5% of revenue

The policy is currently under review and is expected to be revised by end of 2022.