Major investor plans on UN goals

Danish pension fund expects big returns from sustainability investment

One of Europe’s biggest pension funds is expecting doubledigit returns on a new Danish investment vehicle that’s based on the United Nation’s sustainable development goals.

ATP, which has about $120 billion (U.S.) in assets under management and is based north of Copenhagen, predicts it will make 10-12 per cent with its bet on the Danish SDG Investment Fund, which was launched on Thursday. Risks will be limited because of the government’s involvement, according to ATP’s chief executive officer, Christian Hyldahl.

Hyldahl says the logic of investing in assets that track clear ethical and environmental standards hasn’t been dented by the shift in policy from the government of the world’s biggest economy. U.S. President Donald Trump’s exit from the Paris climate accord last year was met by dismay in Europe. Denmark, home to some of the world’s biggest companies in the wind power industry, voiced particular disappointment.

But for investors, “there are plenty of opportunities and the world doesn’t stand still because the U.S. has decided to step back,” Hyldahl said.

“This is a market in growth and there will be many opportunities, also in emerging markets countries,” he said. “So we expect that these investments will make up an increasingly larger part of our portfolio.”