Responsible Investing

ATP pursues optimal climate effect: The future's green winners may be black today

The Danish pension fund is now shifting its investment approach and says it would be better for the climate and returns if pension savings were to be invested in power utilities working intensely on climate adaption yet for which green objectives remain further on the horizon.
"If we wanted to appear greener, then we ought to completely drop power utilities or only pursue those that already are very green. Doing so would change our climate footprint with the stroke of a pen, but that simply wouldn't make much of an impact on global emissions. We think we can achieve more with a different approach. The future's green winners may be black today," says ATP Head of Liquid Markets Christian Kjær. | Photo: PR/ATP
"If we wanted to appear greener, then we ought to completely drop power utilities or only pursue those that already are very green. Doing so would change our climate footprint with the stroke of a pen, but that simply wouldn't make much of an impact on global emissions. We think we can achieve more with a different approach. The future's green winners may be black today," says ATP Head of Liquid Markets Christian Kjær. | Photo: PR/ATP
Finans
BY JETTE AAGAARD

Denmark's state-owned labor market pension fund, ATP, will henceforth aim to invest in power utilities intensely working toward climate adaption – even when such companies still have a long way to go before reaching their goals. That's why ATP could be at risk of appearing blacker in the short term.

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