April 2, 2020

Danish Pension Fund is a Future-Fit Pioneer

The future of investing is sustainable, which is being demonstrated by LD Pensions and its partnership with the Future-Fit Foundation.

Just released, is LD Pensions’ Future-Fit Pioneer Progress Report, charting a course to reducing their own negative impact as an organization according to the bold ambitions of the Future-Fit Business Benchmark. The report included the announcement that for all new actively managed mandates, their investment managers are required to engage companies to reduce their negative impacts in alignment with the planetary boundaries.

As LD Pensions currently manages funds totalling 35 billion DKK on behalf of 540,000 members, their potential to reduce collective negative impact and incentivize positive sustainable change is tangible. To promote sustainable decision-making with the use of Future-Fit in the companies that they invest in, LD Pensions is collaborating with us at Nordic Sustainability on a pilot project.

A pilot project to spur strategic sustainability

LD Pensions’ influence on the companies it invests in lies with their asset managers, and how they in turn interact with the investees. LD Pensions is currently working with Nordic Sustainability to conduct a pilot project where through their asset managers, they share resources that make it simple for companies to begin working with Future-Fit. This will include offering selected companies a package with a toolkit and consultancy assistance that makes it easier for them to navigate the complexities of making a business sustainable.

A sustainability pioneer

To take leadership in reducing their negative impact as an organization, LD Pensions has joined the Future-Fit Pioneer initiative. Future-Fit is an open source self-assessment tool, that any company can get started using to assess its negative impact across their business as well as increase their sustainability for free. While many companies use Future-Fit for their internal sustainability management, as part of the Pioneer Program, companies agree to publicly share their goals and how they plan to achieve them, effectively forging the path ahead for others to follow their lead.

The commitment to openly sharing progress is a bold and important step, as by using Future-Fit, companies take an ambitious approach to sustainable action that goes beyond traditional measures such as ESG ratings. With the use of Future-Fit, rather than reporting on the small tweaks companies make to reduce their sustainable impact in comparison to the year before, they must now set measurable goals with the eventual objective to operate within the planetary boundaries.

The Future-Fit advantage

When companies take the Future-Fit approach, they asses their progress on 23 Break-Even Goals, which are a comprehensive measure of environmental and social sustainability from greenhouse gas emissions, to product materials, to the treatment of workers. By using Future-Fit, companies have the added benefit of collecting encompassing data, and a reporting framework enabling them to create transparent and systemic self-evaluation and reporting.

You can read more about LD Pensions partnership with Future-Fit here (in Danish), and in English on a case study on the Future-Fit Foundation’s website.