In autumn 2023, LD Pensions presented students at CBS with current challenges relating to our work on responsible investment. Two teams from the Minor in Environmental, Social and Governance (ESG) programme took up the challenge and, before Christmas, submitted their responses to the issues raised in two exam assignments, which have just been assessed.
Amir Hassan, an ESG analyst in LD Pensions who has mentored the two groups from CBS, sees the process as an asset for LD Pensions.
Gaining students’ perspectives on the dilemmas and challenges we face in our day-to-day work has proved to be of great value. It actually helps us shed even more light on current issues. It brings new ideas to the table and helps keep us up to date in our work on responsible investment.
A tool for assessing green board competencies
One of LD Pensions’ questions was how institutional investors can promote ESG expertise on the boards of listed companies, so that they are better equipped to drive a green transition within the company. To this end, the students developed a tool that can map a board’s competencies in the area of green transition. The group demonstrated the tool using selected Danish banks and recommended that LD Pensions use it to evaluate potential board members and/or, together with other investors, to put pressure on boards to improve their understanding of ESG issues.
The photo shows the group that chose to write about ESG competencies on boards of directors during a visit to LD Pensions. From left: Anders Ulrich Nilsson (portfolio manager in LD Pensions), Amir Hassan (ESG analyst in LD Pensions), Simon Holm Larsen, Carl Bjerregaard, Rikke Damgaard and Victoria Mærsk Mc-Kinney Holdt Olufsen.
"With guidance from LD Pensions, we wrote an exam paper in which LD Pensions’ knowledge and insight into ESG and business processes were a key element. For us, the collaboration was an educational experience, where theory from lectures could be translated into the development of a tangible product in practice,” says Carl Bjerregaard from the relevant group.
Mapping the external communications of institutional investors
The second question concerned how institutional investors define and interpret sustainable investments, and how they approach investments in nuclear power, natural gas and arms manufacturers. The students were asked to take a broad range of institutional investors in Denmark as their starting point and draw up recommendations for LD Pensions.
In this project, the students analysed the external communications of selected Danish institutional investors and made recommendations on how LD Pensions should navigate the complex landscape of sustainable investment.
The photo shows the group who chose to write about sustainable investment during their visit to LD Pensions. From left: Kajsa Risbjerg, Victoria Nielsen, Line Kriby Prægel, Emma Fellenius, Amir Hassan (ESG analyst in LD Pensions) and Kristoffer Fabricius Birch (CIO in LD Pensions).
“It was interesting to learn about LD Pensions' ESG strategy. We had some good discussions and received valuable input on how LD Pensions navigates the ESG landscape to ensure long-term returns and reduce risks for its members. We hope that our project will be of benefit to LD Pensions,” said Kajsa Risbjerg from the second group following the programme.
LD Pensions will continue to build on the ideas and input received as part of its ongoing work to develop strategy and policies in the ESG area.
You can follow LD Pensions’ work on responsible investment here.
