Our efforts to promote the green transition
Our efforts to promote the green transition
Responsible investment
As a responsible investor, we have a strategic goal of building an investment portfolio that promotes sustainable changes and minimises negative impacts on society and the climate - all while ensuring the best possible returns. We believe that we can create results that benefit both society and Danish pension savers.
We have set ambitious targets to guide our work on climate change:
- Short-term gials approved by the Science Based Targets initiative (SBTi) for 2028
- A goal to increase the share of green investments by 2030
- A goal to reduce the portfolio's CO2e footprint by 2030
- A long-term goal to achieve a net-zero CO2e portfolio by 2050
Read more about our work on climate change in our investment portfolio in our Climate and Biodiversity Report.
- 20% of our investment portfolio to be made up of green investments by 2030*
- 60% reduction in CO2e emissions from our investment portfolio by 2030**
*We follow the F&P model for calculating green investments. Velliv aims to define green investments according to the EU's taxonomy for sustainable investments. Until the EU's taxonomy is fully in place and a sufficient data foundation exists, Velliv defines its green investments based on the material and data available at present.
**Noted equities and corporate bonds as well as real estate portfolio scope 1 and 2, baseline 2019.
Velliv supports leading standards and initiatives on climate change
As a pension company and long-term investor, taking action for positive change is essential to creating long-term value for our customers and society. Therefore, we have committed to working ambitiously on our climate efforts.
We believe that the best results can be achieved by joining initiatives where we collaborate with other investors, and standards that can guide us and validate whether our ambitions are in line with the Paris Agreement.
We have joined the Paris Aligned Investment Initiative (PAII)
The PAII is a global collaboration of over 50 investors with a combined wealth of approximately 8 times Denmark's GDP in 2024.
By joining, we commit to having a climate-neutral investment portfolio by no later than 2050, meaning a portfolio with net-zero CO2 emissions. Alongside other investors, we will work towards driving the transition to a climate-neutral world and securing CO2 reductions across the economy, not just within our own portfolio.
Our climate goals have been approved by the Science Based Targets initiative (SBTi)
The SBTi is a globally recognised standard that ensures scientific validation of the climate goals set by its member companies against the ambitions of the Paris Agreement.
In 2023, Velliv had its climate targets approved by the SBTi, which include five underlying goals. Two of these are related to investments: One aims to increase the share of listed investments with approved SBTi targets, while the other focuses on reducing the CO2e footprint in the real estate portfolio.
Velliv joins the Finance for Biodiversity Pledge (FBP)
The FBP is a coalition of financial institutions committed to protecting and restoring biodiversity through active investments. It's a pressing issue: Many companies rely on natural resources such as crops, trees, and soil, whose quality and availability depend on healthy and diverse ecosystems. At the same time, these companies impact biodiversity through their operations, creating a complex interplay between resource consumption and degradation. As an investor in companies that depend on and affect biodiversity, we are exposed to the same risks.
3 initiatives to promote the green transition
We support the Paris Agreement
Velliv supports the Paris Agreement and aims to contribute to keeping the average global temperature increase below 1.5 degrees by the end of this century. This is also reflected in our work on investments. Our efforts include ongoing dialogue with managers, active ownership and collaboration with other investors. Through these three efforts, we aim to influence companies to commit to climate targets that contribute to achieving the Paris Agreement's ambitions.
We take am active ownership and investment role
Active ownership means that we use our shareholder position to influence companies. We do this by voting at general meetings and engaging in dialogue with the companies. We encourage them, among other things, to set ambitious climate targets and implement suitable measures to address relevant issues - for example, if they have been involved in incidents with negative consequences for the environment or society, or if they systematically display irresponsible management practices.
We have a proactive approach to fossil investments
The world needs to transition from fossil fuels to green energy in order to meet the targets set out in the Paris Agreement. We have, among other things, chosen to exclude companies that engage in the exploration and extraction of oil and gas, or use coal, oil, and gas for energy production – unless we assess that they have implemented concrete initiatives and measures indicating a credible green transition.