DENMARK - The Danish pension fund ATP has reduced its total CO2 emissions output by 7.4% or 202 tons from 2007 to 2008, according to its first climate report.
The fund said that it has decided to increase its focus on climate and environmental issues in its investment policy, particularly in relation to the risks associated with unstable weather conditions, temperature increases and changes in precipitation.
ATP said it will also focus on the investment opportunities offered by climate change.
For example, the impact of climate change and unstable climate conditions physically affects properties. ATP said that given the high security of Danish mortgage bonds, there is no significant risk attached to the mortgage bond segment, making it eligible for investment.
It added that Denmark has been at the cutting edge of developments in energy efficiency and alternative energy solutions and has made substantial investments in these equities. At the end of 2008, ATP had a portfolio worth around DKK 3.3bn (US$600m) in Danish companies that are suppliers or producers of alternative energy and insulation.
ATP chief executive officer Lars Rohde said: "Our very raison d'être is to provide a good return to our members. CO2-reducing measures often make good business sense by reducing both costs and risks in the future."
ATP aims to reduce CO2 emissions through technology and increased purchase of green electricity. For example, the subsidiary ATP Ejendomme is launching a number of energy-saving measures in its commercial properties, including new construction which is largely energy self-sufficient.
The fund entered into a partnership with the Carbon Disclosure Project in 2008. ATP said that the CDP is expected to contribute information that will form part of its investment decisions.
The ATP also participates in the Danish government's partnership for climate responsibility among investors and is active in a range of international investor forums on these issues.
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