The role of Danish occupational pension funds in driving sustainable investments: A study case of Pension Denmark, PKA and Industriens Pension

Marija Golchovska

Studenteropgave: Kandidatprojekt

Abstrakt

This project investigates the role of the Danish occupational pension funds in sustainable finance. More specifically, this project addresses four issues: a) the current market conditions with regards to sustainable investments; b) the integration of ESG criteria in pension funds investment decisions; c) the relation between pension funds fiduciary duties and their ability to pursue sustainable investments; and d) the pension funds view on the upcoming regulation aimed at solving some of the challenges related to sustainable investments. The data is collected primarily through interviews with representatives from three Danish occupational pension funds: Pension Denmark, PKA and Industriens Pension. The findings reveal that the current market offers plenty of investment opportunities but it's becoming increasingly rivalrous, causing a drop in expected returns. Negative screening was found to be the most commonly used strategy associated with ESG criteria, followed by direct investments that shows pension funds acceptance of greater degree of social responsibility. It was further found the fiduciary duties do not conflict with pension funds ability to pursue sustainable investments only as long as those investments offer optimal risk-adjusted returns for the pension members. Lastly, the EU initiative to create sustainability taxonomy was met with positive reactions from the pension funds, who believe it will solve the issues related to greenwashing.

UddannelserVirksomhedsledelse, (Bachelor/kandidatuddannelse) Kandidat
SprogEngelsk
Udgivelsesdato18 dec. 2018
Antal sider55
VejledereFlemming Bahner