Back in September, Prime minister Mette Frederiksen received an incredible amount of acknowledgement and media coverage when she announced that the Danish pension sector by 2030 will invest 350 billion kroner in the green transition.
This means that about 10 percent of Denmark’s collective pension assets in 2030 will be dedicated to green investments. According to UN’s climate panel, investing heavily in sustainable project are crucial for the green transition. Furthermore, a quick transition to renewable energy and sustainable production and consumption is essential to reach the goals of the Paris Agreement and staying below a temperature increase of 1,5 degrees.
Pressure on the Danish pension companies
The year 2019 was also the year where an increasing number of Danish pension companies decided to sell their controversial investments such as nuclear weapons and oil giants. This was the reaction when the newspaper Information’s exposed the number of “black investments” in the Danish pension sector – investments working against the green transition.
Fortunately, a lot of important steps in the right direction regarding investments and focusing on the green transition, and of which we definitely see and feel in the Matter. And it is not only amongst institutional investors, we feel the interest - Danes are in general much more aware. As an example we sold out over 100 tickets for an event about sustainable investments back in February and had hundreds of people on waitlist.
“Going back just 1,5 years and comparing with today, there is today a completely different focus and sense of urgency regarding sustainable investments. We founded Matter in 2017, and following the extremely warm summer 2018, we all realised how seriously the climate is changing,” says Niels Fibæk, CEO at Matter and continues:
“Two years ago, investors asked themselves ‘why should I invest sustainably?’ Now, the discussion is largely ‘why should I continue investing unsustainably?’ There is a completely different discourse these days.“
We still got far to go
Though the focus and consciousness about sustainable investments has largely increased, there is still a long way to go before most Danish pension savings are invested in the green transition.
“The Danish pension companies want to invest 350 billion kroner in the green transition before 2030, which constitutes a promise to be green front runners for the rest of the world. However, considering that this is less than 10 percent of the collective wealth managed by the pension companies, there is still a long way to go,” says Niels Fibæk, CEO at Matter.
In Matter, we have an alternative to those who want to invest their pension savings in a sustainable future. A sustainable pension implies that your savings will not be invested in damaging companies producing fossil fuels, weapons or tobacco. Likewise, we have high demands for business ethics and corporate governance. Read more about Matter’s different pension schemes offered to everyone, whether you have an existing pension savings or not, or if you and your company are interested in a sustainable business pension.