All pension savings in P+ are invested with a focus on responsible investing, and our Policy for responsible investments applies across all asset classes. And so do our climate targets.

Some members, however, want their pension savings to be invested with an even stronger focus on sustainability than is offered in our standard product. 

That is why, P+ was the first labour market pension fund to introduce an investment profile with enhanced focus on sustainability in the form of P+ Sustainable. 

Enhanced focus on responsibility

P+ Sustainable offers among other things an enhanced focus on human and workers' rights, the environment, biodiversity, climate, responsible taxation and governance.

You get more climate-friendly investments in P+ Sustainable. And the target is for your pension to be CO2 neutral as early as 2030. We include more sustainable investments, and we fully deselect a number of companies and sectors, including weapons, tobacco, alcohol and fossil fuels. 

Part of P+ Life cycle

P+ Sustainable is technically an investment profile within P+ Lifecycle. This means that the insurance covers are the same as in P+ Life cycle. It also means that you can choose P+ Sustainable with three risk levels – High, Medium and Low – just as you can in P+ Life cycle.

Like P+ Life cycle, P+ Sustainable has exposure across multiple asset classes and a large number of individual investments.

In other words, P+ Sustainable is a full market-rate product where your risk is automatically adjusted according to how many years you have until retirement. This means that you take on a higher level of risk in the early years, with the risk gradually reduced as you approach retirement. In this way, you can expect higher returns in the first many years, while at the same time experiencing fewer fluctuations as you approach the age when you need to start drawing on your savings. 

You can read more about P+ Life cycle here

Comparable expectations for risk, costs and returns

Today, the investments in infrastructure, real estate and unlisted equities are the same in P+ Life cycle and P+ Sustainable. Over time, we are, however, working towards P+ Sustainable having an independent portfolio of these so-called alternative investments.

The two portfolios differ primarily in relation to listed equities. When we impose stricter sustainability requirements, we deselect certain investments. Whereas P+ Lifecyle contains 2,000-3,000 equities, P+ Sustainable contains only 300-500 equities that meet stricter deselection criteria.

Overall, our expectation is that risk, costs and returns in P+ Sustainable over a long horizon will be on par with P+ Life cycle. However, the increased focus on sustainability may result in different fluctuations in returns for P+ Sustainable. While there is significant risk diversification in P+ Sustainable, it is not as extensive as in P+ Lifecycle, as P+ Sustainable has fewer individual investments due to the stricter deselection criteria.