Strategic Shift in Pension Product Offerings
PenSam Pension has implemented product adjustments to mitigate the financial burden of early retirement benefits. Effective July 1, 2024, the continuous benefit for early and senior pensions will be reduced to run only until the point members can begin receiving their old-age pension, which is three years before the state pension age. This change was made to prevent further deterioration of old-age pensions, as increased early and senior pension claims have led to higher risk coverage costs, reducing the portion of contributions allocated to old-age pensions. (Fiscal Year: 2024, Source: Årsrapport 2024, page 4)
Pioneering Impact Investing: New Fund Targets Global Goals
In November 2024, PenSam Pension entered into an agreement to invest in Verdensmålsfond II (Sustainable Development Goals Fund II). This is a public-private partnership with other pension companies and the Investment Fund for Developing Countries (IFU). The fund aims to contribute to the realization of the UN Sustainable Development Goals through private sector investments, with a particular focus on green transition and equitable social development in developing economies across Africa, Asia, and Latin America. A key rationale for this investment is the fund’s embedded preferential return and loss guarantee, which reduces risk for PenSam’s members. (Fiscal Year: 2024, Source: Årsrapport 2024, page 4-5)
Expanding Infrastructure Portfolio for Sustainable Returns
PenSam Pension plans to continue expanding its portfolio in strategic infrastructure sectors. The objective is to strengthen and create robustness for financial returns while actively contributing to the transition towards a more sustainable and energy-efficient economy. This includes investments in assets such as energy infrastructure, fiber optic networks, and transport electrification, chosen for their resilience to macroeconomic fluctuations and potential for long-term value creation. (Source: Årsrapport 2024, page 15-16)
Commitment to Climate Action: Portfolio Decarbonization Target
PenSam Pension is committed to integrating the Paris Agreement’s goal of a maximum temperature increase of 1.5 degrees Celsius by 2030. The fund aims to reduce CO2 emissions across its global equities, credit bonds, and Danish real estate asset classes by 55% compared to 2019 levels by the end of 2025. This includes a conscious decision to reduce exposure to carbon-intensive companies, particularly in the fossil fuel industry. (Fiscal Year: 2025, Source: Årsrapport 2024, page 18, 21)
Boardroom Refresh: New Leadership in Audit and Risk Committee
Charlotte Møller has joined PenSam Pension’s Audit and Risk Committee as the new chair in 2024. The committee, comprising three members, oversees accounting and audit matters, as well as risks associated with the company’s operations. (Fiscal Year: 2024, Source: Årsrapport 2024, page 28)
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