ATP, Hilleroed, Denmark, intends to invest 100 billion Danish kroner ($15.6 billion) in green investments by 2025 and 200 billion kroner by 2030 in an effort to decarbonize its portfolio, the fund said Thursday.
ATP, which has 927.6 billion kroner in assets, said it seeks to reduce carbon emissions by 70% by 2030 across its equity, real estate and corporate bonds portfolios.
ATP's green investments currently include an allocation to green bonds, which was 36 billion Danish kroner as of June 30. ATP also allocated 6 billion kroner to long-term investments in Danish companies, including renewable energy projects. Among its 2021 investments, ATP also made a 1.5 billion kroner direct investment in Northvolt, a Swedish producer of electric car batteries.
Bo Foged, CEO of ATP, said in a news release that the fund "cannot afford" not to increase its climate ambitions as he expects the green transition to be a "fantastic opportunity" to create great returns.
"In ATP, we believe that the winners of the future think and act green. At the same time, the climate challenges also represent a considerable business risk which can hit our investments and must therefore be offset. So economically, we cannot afford not to take action now," Mr. Foged said.
A spokesman could not be reached to provide further details.
