What

PensionDanmark, a Danish pension fund with over 800,000 members, has implemented a biodiversity strategy to address nature loss through its investment portfolio. Focused on real estate and infrastructure, the fund aims to support biodiversity and reverse its decline by integrating nature considerations into investment decisions, particularly where it holds a controlling majority. In 2023, several initiatives were launched, and the organisation monitors and reports on their outcomes to improve effectiveness.

Why

The strategy responds to the urgent need to address global biodiversity decline and aligns with member preferences for nature-rich environments. The business case includes reducing risks to human and environmental health, enhancing long-term financial returns, and ensuring competitiveness in real estate tenders, where biodiversity plans are increasingly required. The fund supports the Nature Positive initiative, targeting a reversal of biodiversity loss by 2030.

Creating our biodiversity strategy

The strategy began with a review of external initiatives and the signing of the Finance for Biodiversity pledge in 2021. PensionDanmark identified real estate and infrastructure as areas with high impact potential due to direct control over assets. The ‘Investments for Life’ biodiversity strategy was developed to prevent net biodiversity loss and build on existing commitments to the German Sustainable Building Council (DGNB) standards and EU taxonomy.

Actions include biodiversity screenings during land acquisition and biological expertise in project development. The strategy is expected to evolve with ongoing data review and implementation experience.

Data and monitoring

Data collection underpins the strategy, using Science Based Targets for Nature (SBTN), DGNB certification, and EU taxonomy to assess impact. The SBTN framework prioritises avoiding harm, reducing impact, and restoring nature. DGNB metrics—green and blue areas, canopy cover, biofactor, and habitat quality—form the basis of four of six biodiversity indicators. The EU taxonomy supports compliance with the ‘Do No Significant Harm’ principle, informing land selection and mitigation actions.

Implementing on-the-ground initiatives

Real estate

For new construction, biodiversity is considered from site selection to maintenance. Screening tools based on public land data help avoid high-value biodiversity sites. Biological experts are involved in planning, and in some cases, partners like the Danish Society for Nature Conservation contribute to project quality.

Indicators assess the size and quality of biodiversity space, and progress is reported annually. Wood used in construction must be PEFC or FSC certified to reduce off-site biodiversity impacts. Nature-based maintenance is implemented, and tenants are engaged in upkeep.

Infrastructure

In partnership with Ørsted, the Anholt offshore wind farm supports marine biodiversity through simulated reefs and seaweed/mussel farms, enhancing fish habitats and seabed restoration. Scientific input was provided by the Technical University of Denmark and WWF.

Engaging with our stakeholders

Listed equity holdings are screened for biodiversity risks, especially in sectors with high exposure. PensionDanmark uses active ownership through engagement and voting, supported by Federated Hermes EOS, to encourage risk mitigation and sector benchmarking.

Next steps

PensionDanmark has increased biodiversity reporting from 6 to 12 new construction projects and 66 existing properties. Industry collaboration is underway to develop a common biodiversity impact standard. The fund also participates in initiatives such as Nature Action 100 and the UN PRI Spring stewardship initiative. Future plans include setting biodiversity targets for listed assets and strengthening impact assessments.

Top tips

Recommendations include mapping asset classes for impact potential, securing stakeholder buy-in, understanding biodiversity risks and opportunities, and measuring and reporting outcomes. Public commitments like the Finance for Biodiversity pledge can help structure accountability and action.