Portfolio level – Portfolio decarbonisation reference target
Baseline date: 31 December 2019
Baseline performance: 71,9tC02e/$million invested 615.220 tC02e absolute emissions
Target year(s): 2025, 2030 (2050 – Net Zero)
- 2025: -44 % (Measured as Weighted Average Carbon Intensity, WACI)
- 2030: Not yet determined on portfolio level.
- 2050: Net zero
GHG scopes included: Portfolio emissions (baseline 2019 and onwards): Scope 1 and 2 (listed equity, corporate bonds, real estate).
Asset level alignment (baseline year 2022): Include Scope 3 emissions where data are available.
Asset classes in scope: Listed equity, Corporate bonds (European and US High Yield, Emerging Market Corporate Debt), Real estate (Danish properties)
Methodology/ net zero scenarios: Targets are set in close dialogue with Pensam’s stakeholders, IPCC reports on global warming and with an eye toward technology development.
Stakeholders include Climate action 100+, IIGCC, Net Zero Investment Framework, Dansif, PRI etc.
Emissions metrics: With regard to the portfolio emission reference target (-44 % in 2025), Pensam disclose emissions on intensity basis (Weighted Average Carbon Intensity) as recommended by TCDF.
WACI is used, since it reduces market volatility effects.
Portfolio level – Investment in climate solutions target
Target date(s): 2025, 2030
- 2025: 15% invested (of total AUM) in climate solutions (“green investments”).
- 2030: 20% invested in climate solutions (“green investments”).
Methodology: PenSam’s investments in climate solutions are calculated on a best-effort basis and are defined as renewable energy, energy efficiency and development of related downstream systems such as investments in wind and solar energy, biomass and the like, energy efficiency in buildings, technology solutions, energy transmission of electricity etc.
PenSam calculates the green investments on a best effort basis, but later on the method is expected to follow the EU taxonomy, when it is ready.
Asset level – Portfolio coverage target
Baseline date: 31 April 2022
Baseline performance: 25-40% (Best-effort basis due to data limitations)
Target date(s): 2027, 2032
- 2027: 50%
- 2032: 70%
Asset classes in scope: Listed equity and corporate fixed income, Danish real estate.
Data sources: Listed equity & corporate fixed income: MSCI ESG Manager, IIGCC, PAII Net Zero Investment Framework.
Real estate: Asset manager, CRREM.
Asset level – Engagement threshold target
Baseline: 40-60% (Best-effort basis due to data limitations)
Further work: We are currently working on establishing emission/ESG data support for all properties. We plan to include foreign real estate as soon as possible.
Fossil fuel investment: At PenSam, we work to integrate the Paris Agreement’s goal of a maximum temperature rise of 1.75 degrees. Therefore, we have sold a large number of coal, tar sands and oil companies to reduce PenSam’s investments in fossil fuels.
PenSam currently has 330 companies on the exclusion list, with the largest number being related to controversial weapons as well as companies in coal and tobacco. See Guidelines for responsible investment.
Operational emissions (2021): 135 tCO2e (include scope 1 and scope 2)
Pensam’s guidelines and policy on responsible investments (including targets). We expect to publish a TCFD-report in 2023.