Not enough attention has been paid to the restoration of nature and biodiversity when it comes to the green transition. But Denmark's largest labour market pension fund, PensionDanmark, is now acting in favour of the nature by publishing the industry's first annual Biodiversity Report.
At PensionDanmark, the new strategic focus on biodiversity is more than compatible with the clear objective of creating value for PensionDanmark's 815,000 members by delivering good long-term returns on real estate investments.
"PensionDanmark believes companies must have a clear strategic commitment to making a positive contribution to biodiversity if they want to be a long-term and profitable investment case going forward," says Torben Möger Pedersen, CEO of PensionDanmark.
"Biodiversity is becoming an important competitive parameter on equal footing with climate, so incorporating it into our real estate investments offers huge potential."
The report maps the impact on nature from six urban development projects for which PensionDanmark is the developer. Since there are no Danish or international standards for reporting on biodiversity, PensionDanmark has developed a methodology based on a number of biodiversity targets inspired by scientific recommendations and DGNB's sustainability certification requirements.
The biodiversity report is only the first step in a progressive expansion of PensionDanmark's commitment to efforts to restore nature. In 2023, PensionDanmark will also map the impact of biodiversity in existing properties, while several new tools will ensure that PensionDanmark supports development in biodiversity in fully established projects.
"We are well on our way, but the finish line is still a long way off," says Torben Möger Pedersen. "PensionDanmark is therefore also expanding its work by requiring the companies in which we invest to act in favour of nature restoration."
Information: Biodiversity Report
PensionDanmark is the first in the industry to report on the biodiversity impact of six projects involving the development of real estate and urban areas.
In the absence of international standards, the report applies methodology that PensionDanmark has developed in collaboration with SLA, Andel and Aaen Engineering.
The methodology is based on a number of biodiversity targets inspired by scientific recommendations and DGNB's sustainability certification requirements.
The results for the six projects demonstrate that, based on the reporting on six indicators covering topics such as crown cover, protected nature and species diversity, PensionDanmark is on track to achieve its overall goal of being Nature Positive by 2030.
Information: PensionDanmark's work on biodiversity
PensionDanmark's focus on biodiversity really took off in 2021 when it signed up to the Finance for Biodiversity Pledge, under which a number of Danish and international institutional investors commit to protecting and restoring biodiversity through financing activities and investments.
In May 2022, PensionDanmark launched its first Biodiversity Strategy and made a commitment that investments in urban areas and new construction must make a positive contribution to biodiversity overall by 2030 at the latest.
In 2022 PensionDanmark established an investment key for land purchases to ensure that the guidelines in the EU Taxonomy Regulation are followed, meaning that investment focuses on areas with low biodiversity.
2023 will see further work on biodiversity in areas such as existing properties, and several new tools will ensure that PensionDanmark supports development in biodiversity in fully established projects. This includes initiatives to engage residents in tending to nature so that it becomes a source of community.
