OUR MEMBERS OUR WORLD OUR EMPLOYEES CORPORATE SOCIAL RESPONSIBILITY REPORT 2020 PensionDanmark A/S — CVR no. 16163279 European Pension Fund of the Year 2020 CONTENTS Letter from the CEO ................................... 5 2020 in numbers ........................................ 6 Business model ......................................... 8 A sustainable DNA ....................................10 OUR Partnerships for change ...........................12 WORLD Collective bargaining in 2020 ....................13 Our world ..................................................40 COVID-19 has changed Our contribution to Denmark ...................42 the way we work .......................................14 We generate responsible returns ............45 Diversity and gender equality More high-return green investments .......46 on the agenda ...........................................16 With responsibility come tough choices ...48 Active ownership pays off .........................50 OUR Active ownership brings valuable change ........................................53 MEMBERS Sustainable real estate provides Solidarity-based scheme the framework .........................................54 provides security .......................................20 Our efforts in 2020 and Real estate project with SDGs in mind .....57 our focus in 2021 .......................................66 74-year-old Preben chooses flexibility .....23 Sustainability programme for Prevention ensures a long new urban areas .......................................58 healthy working life ..................................24 Preventive measures at CG Jensen ..........27 APPENDIX Appendix ...................................................68 The best possible supplementary OUR Accounting policies ...................................71 training ......................................................28 EMPLOYEES Independent auditor’s report ....................75 Supplementary training We assume co-responsibility ....................63 during lockdown .......................................31 Our employees set the sustainable course ....................................64 THEME: OUR MEASUREMENT Our measurement .....................................32 2 Corporate Social Responsibility Report 2020 Marian from Alliance+ giving a shine to the floors at the Opera Corporate Social Responsibility Report 2020 3 Letter from the CEO LETTER FROM THE CEO CEO “Early on in 2020, we chose to grow our portfolio of sustainable listed companies. Our purpose was to produce solid returns and help achieve the 17 UN Sustainable Development Goals. This was a wise decision.” Torben Möger Pedersen Sustainability in the time of coronavirus 2020 underlined just how closely connected the world is. The uncertainty ahead of the US presidential elections. However, pandemic broke out in a market in China but quickly spread to a variety of government relief packages lent support to the the rest of the world. The health crisis soon escalated into a economy and helped the financial markets climb back into serious economic crisis – a crisis of which we still do not know positive territory following the massive losses sustained in the full consequences of. Being able to act quickly and safely in the spring. Early on in 2020, we chose to grow our portfolio a changing world is more important than ever. of sustainable listed companies. Our purpose was to produce solid returns and help achieve the 17 UN Sustainable Develop­ Many of PensionDanmark’s members and companies have ment Goals. This was a wise decision. Thanks to the returns endured periods of lockdown, and jobs have been lost as a on our portfolio of sustainable equities and on our investments consequence. The hotel and restaurant industry, the transport in green energy and sustainable real estate, we closed the year industry and the many employees at Denmark’s airports have with very satisfactory returns for both our younger and our been particularly hard hit. Many of the companies that were older members. not shut down had to implement restrictions and other mea­ sures to protect themselves against COVID­19. Our 2020 Corporate Social Responsibility Report sets out to measure the impact of our various efforts – in healthcare, Throughout the crisis, we stayed focused on our core mission: supplementary training and investing – on the UN Sustainable Enable our members to have a long and productive working Development Goals. And we have begun setting targets for life and give them a financially secure retirement. Our highly what we want to achieve. This work, which has only just begun, digitalised and automated work processes – combined with will continue in the years ahead. By focusing on measuring the responsible and professional conduct of our employees our impact – negative as well as positive – and by disclosing – proved to be key assets in those periods when most of our our targets, we are raising the bar for our corporate social employees had to work from home. Our call centre opera­ responsibility efforts. ted smoothly with response times of just a few seconds, web service traffic was record­high, and our investment team was The pandemic has been and still is an unwelcome guest. But busier than ever. we will incorporate the lessons learnt – and the many good new initiatives – into our future endeavours. In 2020, we cele­ We were born with a long­term perspective. Members joining brated the 30th anniversary of public labour market pension us in 2020 will receive their pension benefits from 2070 or so schemes. And in December, we won the European Pension and for the following 20 years. We are responsible for investing Fund of the Year award at the IPE Awards 2020 – for the fifth members’ savings in a way that adds value and at the same time. Being recognised as Europe’s top pension provider both time contributes to making the world of our future retirees encourages and obliges us to continue our important work of sustainable. We call this approach “Do good and do well”. giving our members a financially secure retirement – through a sustainable approach. The financial markets had a turbulent year in 2020 due to the corona pandemic, new geopolitical tensions, Brexit and Torben Möger Pedersen CEO, PensionDanmark [email protected] Torben Möger Pedersen, CEO of PensionDanmark 4 Corporate Social Responsibility Report 2020 Corporate Social Responsibility Report 2020 5 2020 in numbers 2020 IN NUMBERS PensionDanmark has 391,400 active mem- 1,900 companies received grants for 47,900 supplementary training programmes, an increase bers employed in 21,500 companies of just under 2,800 compared with 2015 Green infrastructure investments grew to DKK A typical 45-year-old member received a return of billion in 2020 from DKK 13.5 billion in % on his or her savings 15.3 7.6 2015 PensionDanmark is Denmark’s most cost-effec- The carbon footprint of our total investments tive pension fund with annual administrative ex- was reduced to 49.5 tonnes/EURm from penses of DKK 297 per member 58.7 tonnes/EURm in 2019 Member savings have grown by DKK 248 bil- Progress on 307 milestones through Pension- DKK lion since 2000 to amount to DKK 269 billion in Danmark’s active ownership, compared with 253 2020 against DKK 180 billion in 2015 milestones in 2019 Our members had access to 600 clinics against PensionDanmark is the owner/co-owner of 159 122 in 2015 properties totalling 1.4 million sqm 1.5 million logins to pension.dk compared with For the 5th time, PensionDanmark was named 1.2 million logins in 2019 European Pension Fund of the Year at the IPE Awards 2020 6 Corporate Social Responsibility Report 2020 Corporate Social Responsibility Report 2020 7 Business model BUSINESS MODEL PensionDanmark pursues a 360-degree approach to engaging with our members. We are committed to giving our members a financially secure retirement by generating solid returns on their savings. We want to enable them to have a long and productive working life by offering them an active and preventive approach to health- care. We want our members to maintain and upgrade their skills through lifelong learning, and we want to protect them by means of insurance policies that provide financial security if accident or illness occurs. PRODUCTS VALUES RESULTS PENSION Members are ensured a financially secure Our members received solid returns despite un­ Pension savings consist of three savings pro­ retirement. Investment risks are aligned with certainty and considerable financial market vola­ ducts: Retirement savings, lifelong pension and members’ age. Savings are invested in a sus­ tility. The 45­year pool produced a return of 7.6%, annuity pension. tainable and responsible manner. while the 67­year pool yielded a return of 3.9%. INSURANCE These policies provide security for our members 999 members were awarded supplementary antic­ Our members are covered by insurance in case during their working lives. Members can raise ipatory disability pension, 2,986 members received of death, critical illness, anticipatory disability or reduce insurance amounts to align them with a lump sum of typically DKK 100,000 on critical pension or having to take a subsidised job. their current needs. Through integration with illness, and 3,072 beneficiaries received a lump public registers, we make sure our members sum on the death of a member. Our members re­ always receive what they are entitled to. ceived insurance benefits of DKK 4.4 billion in all. HEALTHCARE PROGRAMME The healthcare programme helps prevent repet­ 39,000 members