In this episode of Next stop: Green business, we visit PensionDanmark at their headquarters on the waterfront of Copenhagen in what is known as the Freeport.

At first glance, “hippies” is not the word most would associate with one of Denmark’s largest pension funds. But when PensionDanmark began investing in wind energy back in 2010, that’s exactly how some industry peers saw them.

“The other colleagues in the sector, they thought we were hippies. With flower crowns and everything.”
Jan Rasmussen, Head of ESG and Sustainability at PensionDanmark.

From early mover to market shaper

Fifteen years on, those early moves into offshore wind have proven to be more than a symbolic gesture, they have become a strong business case that redefined the industry. Today, PensionDanmark manages around €45 billion on behalf of over 838,000 members. And as Jan Rasmussen explains, long-term risk-adjusted returns and green investments are not opposing forces, but rather complementary goals.

“We don’t see the conflict, because it’s all about long-term sustainability.”
Jan Rasmussen, Head of ESG and Sustainability at PensionDanmark.

From calculating returns through Power Purchase Agreements (PPAs) to co-founding Copenhagen Infrastructure Partners (CIP), PensionDanmark has helped shape the investment vehicles that now power the global green transition.

And their green ambitions extend beyond energy. In Denmark’s construction sector, the pension fund has raised the bar for sustainability through its real estate program, demanding high standards not only for energy efficiency, but also for biodiversity, nature, and social responsibility.

“There is a very thick manual,” Rasmussen notes. “Not only for climate and energy consumption, but also for nature and biodiversity… and social clauses covered by collective agreements.”
Jan Rasmussen, Head of ESG and Sustainability at PensionDanmark.

This long-term approach is resonating as the tenants are willing to pay a little extra for sustainable buildings, and the construction industry is adapting.

“They (constructors) often come and say, what do you want from us, what do you demand? And we say, we want you to find the best sustainable solution, and then they will compete and develop that for us”
Jan Rasmussen, Head of ESG and Sustainability at PensionDanmark.

While PensionDanmark started as an early mover, they have since cleared the path for others to follow.

“We made it feasible for other institutional investors and pension funds like us to invest in the development of renewable energy,” Rasmussen says. “They don’t have any excuse for not investing in these structures anymore.”
Jan Rasmussen, Head of ESG and Sustainability at PensionDanmark.

What was once seen as an unconventional move has become a model for responsible, long-term investment. By investing early in renewable energy and embedding sustainability across its portfolio, PensionDanmark has shown that financial strength and green transition can go hand in hand.

Listen to the full episode below.

About the podcast: Next stop: Green business

Next stop: Green business is part of State of Green’s podcast universe and offers short, accessible episodes of no more than 15 minutes. Each episode focuses on one company’s green transition journey, recorded on-site to capture both atmosphere and authentic voices.

The podcast blends interviews, real-time conversations and on-site impressions, all shaped around a recurring set of questions that invite honest reflection and personal insights. Besides NKT, the podcast series includes episodes with companies such as Danfoss, Grundfos, ROCKWOOL, PensionDanmark, Hempel, FLS, Schneider Electric and VELUX. New episodes will drop throughout the remainder of 2025.

The miniseries is available on Spotify, Apple Podcast and stateofgreen.com.