Pædagogernes Pension Invests in Sustainability-Driven Danish SDG Fund II

Pædagogernes Pension, the pension fund for early childhood teachers, has invested in the Danish SDG Investment Fund II, marking a significant step towards sustainable investing aligned with the United Nations Sustainable Development Goals (SDGs). The fund, managed by Impact Fund Denmark, represents a collaboration among several Danish pension firms, including PFA, PKA, P+, and PenSam. With a current capital commitment of DKK 3 billion, the fund focuses on private sector investments in developing regions in Africa, Asia, and Latin America, aiming to promote the green transition and improve social conditions while ensuring attractive returns. The initiative employs a public-private partnership model whereby public capital leverages private risk capital, significantly reducing investment risks. Pædagogernes Pension's involvement signifies a strong commitment to responsible and sustainable investments, aiming to create long-term value for its members and society by addressing gender equality and improved social conditions. The target capital commitment for the fund is DKK 5 billion, anticipated by the end of 2025, and will primarily serve growth markets with thoughtful risk distribution and an EU loss guarantee that makes it appealing to private investors.