The SBTi has approved Topdanmark’s near term science-based emissions reduction target

In August 2024, Topdanmark has had its near-term targets for reduction of greenhouse gases approved by the Science Based Targets initiative (SBTi). SBTi is an official, international alliance backed by the UN, which helps companies ensure that their climate targets comply with the Paris Agreement.

In August 2024, Topdanmark has had its near-term targets for reduction of greenhouse gases approved by the Science Based Targets initiative (SBTi). SBTi is an official, international alliance backed by the UN, which helps companies ensure that their climate targets comply with the Paris Agreement.

Approved targets

In 2022, Topdanmark was the first Danish-registered insurance company to join the international climate alliance. This meant that Topdanmark committed, within two years, to formulate a series of ambitious and science-based targets for activities within investments and daily operations. These targets have now been approved.

It is important for us to take responsibility for helping to prevent climate change, and we are really pleased that we have now had our ambitious climate targets approved by SBTi for 2030
Peter Hermann CEO of Topdanmark



A step further

These targets have now been approved by the international climate alliance, SBTi. Moreover, Topdanmark has voluntarily chosen to set goals for the supplier portfolio, as deliveries from this generally have a high climate impact.

One thing is that the targets are approved - now we must continue the work to achieving them – this applies to the targets we can directly influence ourselves, but also the part where we must collaborate with our suppliers and in relation to our investments
Peter Hermann CEO of Topdanmark



Facts

Topdanmark commits to reducing the emission of greenhouse gases both in own operations, with our suppliers, and with the companies in which we invest.

Ambitious objectives

For our targets to be approved by SBTi, they must cover all significant parts of the business, and the level of ambition must support the goal of the Paris Agreement to limit the global temperature increase to 1.5 degrees. The approved objectives extend to 2028 and 2030, respectively.

Topdanmark's portfolio targets cover 70% of its total investment and lending by total balance sheet assets as of 2022. As of that year, required activities made up 7% of Topdanmark's total investment and lending by total balance sheet assets while optional activities made up 70% and out of scope activities made up 23%.

Topdanmark commits to reduce absolute scope 1 and 2 GHG emissions 45% by 2030 from a 2022 base year.

Topdanmark commits to assure that 20% of its suppliers by spend, covering purchased goods and services, will have science-based targets by 2028.

Regarding mortgage backed securities, Topdanmark commits to reduce GHG emissions from the residential real estate sector within its securitized fixed income portfolio 53.2% per square meter by 2030 from a 2022 base year. Furthermore, Topdanmark commits to reduce GHG emissions from the commercial real estate sector within its securitized fixed income portfolio 64.7% per square meter by 2030 from a 2022 base year.

Regarding listed equity and corporate bonds, Topdanmark commits to align its scope 1 + 2 portfolio temperature score by invested value within its listed equity and corporate bonds portfolio from 2.33°C in 2022 to 1.95°C by 2028. Furthermore, Topdanmark commits to align its scope 1 + 2 + 3 portfolio temperature score by invested value within its listed equity and corporate bonds portfolio from 2.54°C in 2022 to 2.18°C by 2028.




The plan for achieving these targets, includes:

  1. Topdanmark will change heat- and other energy sources to reduce our CO2e emissions from our own operations.
  2. Topdanmark will encourage our suppliers to also set targets for reducing their CO2e emissions
  3. Topdanmark prioritizes investments in companies and assets that not only deliver strong financial returns but are also aligned with our sustainability goals.
  4. Monitoring the sustainability performance of assets within the investment portfolio with clearly defined targets for temperature score, absolute emissions, and emissions intensity.
  5. Proactively engaging with invested companies to set ambitious emissions reduction targets and to increase transparency and disclosure of climate-related risks.



Facts

Science Based Targets is an international association and joint venture between the Carbon Disclosure Project (CDP), the UN Global Compact, the World Resources Institute (WRI) and the World Wide Fund for Nature (WWF).

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Marie-Louise Krogh Bisgaard
Head of Sustainability
mobile 30 65 53 76
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Marie Uldall Thomsen
Sustainability Consultant
mobile +45 61 16 70 44
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