As urbanisation expands, the natural habitats of countless species are disrupted or destroyed, leading to a sharp decline in biodiversity. Financial institutions, particularly those with substantial investments in urban development, are under increasing pressure to address these environmental impacts.

As one of Denmark’s leading pension funds, PensionDenmark launched a biodiversity strategy in 2022 with commitments to ensure that all urban and new construction investments contribute positively to biodiversity by 2030.

The strategy mandates project-specific biodiversity plans for new development and builds on a rigorous methodology to measure biodiversity impacts. This includes developing a detailed framework for assessing six key biodiversity indicators. These indicators include measures of green and blue areas (vegetation and water bodies), canopy cover, and the presence of habitats with high biodiversity value.

By employing these metrics, PensionDanmark can document the effects of its investments and ensure alignment with the strategic goals of becoming nature-positive.

In 2022, PensionDanmark assessed six projects, including urban and residential areas in Aarhus and Copenhagen, along with 77 fully owned properties in 2023, for baseline biodiversity status and the potential for increasing biodiversity through design and landscape management.

These assessments are detailed in annual biodiversity reports, serving as tools to keep the organisation accountable and on track with biodiversity goals.

Despite some losses in green and blue areas during the construction phase, quantitative indicators showed a general increase in canopy cover, while qualitative indicators demonstrated habitats of high biodiversity value.

For existing properties, the results in 2023 showed a large potential in improving the quality of existing green areas, which account for one-third of the entire property area.