PFA reports new fall in CO2 emissions, drops some oil and gas firms
Fund says equity portfolio emits 21% less CO2 per million USD invested than MSCI world index
Denmark’s largest commercial pension fund, PFA, has announced a significant reduction in the carbon footprint of its equity portfolio in the first six months of this year – a period in which it now reveals it sold several oil and gas equities.
The DKK599bn (€80.5bn) pension fund said the latest climate review of its equity portfolio shows that at the end of June, the assets had 21% less CO2 emissions per million dollars invested than the MSCI All Country World Index – and that this gap had widened over the first half from the 16% reported at the end of 2019. Kasper Ahrndt Lorenzen, PFA’s group CIO, said: “In addition to the fact that
a smaller CO2 footprint is of course good for the climate, it also means that our equity portfolio is exposed to fewer climate-related risks.” He added that a CO2 reduction supported both the environment and the pension fund’s ability to provide strong, risk-adjusted returns.
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