The National Bank of Denmark has published updated climate-related indicators for the Danish financial sector, comparing developments with the euro area, and finds that Danish insurance and pension companies and Danish investment funds have reduced their exposure to high-emitting listed companies. The weighted average carbon intensity of their listed equity and corporate bond investments was about 10 tonnes of greenhouse gas emissions per DKK 1 million of investee revenue in 2024, around half the 2020 level and about one-third of 2018. The decline reflects both lower holdings of the most carbon-intensive companies and lower emissions relative to turnover at the companies held. A similar fall in carbon intensity is observed for euro area investors; across Denmark and the euro area, insurers, pension funds and investment funds have invested more than DKK 50,000 billion in listed companies, including sectors such as utilities, energy and materials manufacturing. Based on the latest European Central Bank figures, the euro area insurance and pension sector’s portfolio carbon intensity was about 20 tonnes per DKK 1 million of revenue in 2021 versus 17 tonnes for Denmark, and Nationalbanken’s calculations indicate this level difference continued in 2024; it also notes that lower exposure can reduce transition risks linked to climate regulation and other green-transition requirements. The indicators cover financed greenhouse gas emissions and exposure to carbon-intensive companies through equities and corporate bonds in listed non-financial firms, using the Weighted Average Carbon Intensity measure (scope 1 emissions per DKK 1 million of revenue). The European Central Bank publishes euro area indicators for 2018–2021, while Nationalbanken publishes Danish data for 2018–2024 and, for this release, calculated euro area figures for 2022–2024 using the ECB’s Securities Holdings Statistics by Sector and company-reported emissions data from ISS and MSCI.

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