Investment categories
Investments in this category are actors considered to be among the best in their field at addressing environmental (E), social (S) and governance (G) considerations. They represent a wide range of sectors, industries and countries and contribute to creating the necessary robustness and risk diversification in VækstPension Aftryk.
ESG best-in-class are those that ensure that VækstPension Aftryk has the necessary breadth and risk diversification.
We have established individual criteria for when an investment can be included in this category. For example, in case of listed equities and corporate bonds, companies must meet Velliv's minimum requirements for their ESG scores, as sourced from our external data providers, before they can be included in this category.
Velliv invests in government bonds to ensure a balance between return and investment risk. In this category, Danish government bonds are particularly noteworthy as an ESG best-in-class option. This is because Denmark has generally made significant progress in sustainable development compared to many other countries.
For example, the Danish Parliament adopted the Danish Climate Act in 2020, which the Danish Ministry of Climate, Energy and Utilities described as ”an ambitious and binding climate act”. The act stipulates, among other things, that Denmark must reduce its greenhouse gas emissions by 70 per cent in 2030 compared to 1990 levels.
With the Climate Act, Denmark is committed to becoming a carbon-neutral society by no later than 2050. Denmark's climate efforts are rooted in one of the fundamental principles of preserving the strong welfare state. As such, Denmark also focuses on ensuring that the path to carbon neutrality is fair and with focus on social balance. As a result, bonds issued by the Danish government fall within the ESG best-in-class category.