The investment is an important step towards securing a more sustainable future and strengthens Pædagogernes Pension’s commitment to responsible investments that both support the UN Sustainable Development Goals and create long-term value for members and society.
SDG Fund II was launched in November 2024, and with the investment, Pdagogernes Pension joins a collaboration with Impact Fund Denmark (formerly IFU, the Investment Fund for Developing Countries) and the Danish pension companies PFA, PKA, P+ and PenSam. The total capital commitment is currently DKK 3 billion. The fund focuses on private sector investments in developing countries in Africa, Asia and Latin America and aims to promote the green transition, improve social conditions and create attractive returns.
SDG Fund II is an investment that not only ensures solid returns, but also contributes to a more just and sustainable world. We look forward to supporting the fund’s goals and strengthening our commitment to responsible investment. It is important for our members that we through our investments actively work for gender equality and improved social conditions – both in Denmark and globally,” says Sune Schackenfeldt, CEO of Pædagogernes Pension.
Leverage for private capital
The Danish model behind SDG-Fund II is based on a public-private partnership where public capital acts as leverage to mobilize private risk capital. This structure reduces investment risk and ensures that the SDGs can be realized through long-term investments.
“Private investors are often reluctant to invest in developing countries due to the higher risk, but with SDG Fund II we have developed a model that creates attractive investment opportunities at scale. We invest primarily in emerging markets, have a well thought-out distribution of risk and return, and an EU loss guarantee that makes the fund particularly attractive to private investors,” says Lars Bo Bertram, CEO of Impact Fund Denmark.
With its participation in SDG Fund II, Pædagogernes Pension demonstrates its ambition to be a responsible investor that creates value for both its members and society.
The target for the total capital commitment to SDG Fund II is DKK 5 billion, with the remaining commitment expected to be raised by the end of 2025.
About Pædagogernes Pension:
Pædagogernes Pension is the pension company for educators and is 100% owned by the more than 125,000 members. The company manages total pension assets of over DKK 100 billion. Pædagogernes Pension works purposefully with a double bottom line: Good results on the hard numbers in the form of good returns and low costs and a clear ethical identity.
About Impact Fund Denmark:
Impact Fund Denmark is the fund manager for SDG Fund II. Since 1967, Impact Fund Denmark has invested in more than 1,300 companies in over 100 developing countries and is Denmark’s most experienced impact investor in developing countries.
About SDG Fund II
With its investment strategy, the fund will make a positive contribution to the SDGs. Across the investments, the fund will especially contribute to SDGs 5, 8, 10 and 13, covering “gender equality”, “decent jobs, ”reduced inequality“ and ”climate action”. In addition, the investments within the individual sectors will impact other SDGs.
Source