Regulatory requirements and information gaps – challenges for pension funds to do adequate ESG-reporting

The rapid development in ESG investments and reporting has been driven by several factors, including pressures from stakeholders, better and more data, ethics, and regulation. Adverse and visible effects of climate change have pushed to this movement and accelerated the need for actions to reduce carbon emission and mobilize capital. Governments, firms, and organisations formulate target for emission reductions, but it is needed that information is available to monitor progress. For this purpose, adequate accounts of investments and reporting of carbon dioxin footprints of portfolios are essential. This study investigates if there are gaps between what major Danish pension funds can report in terms of the data and accuracy of sustainability accounts compared to the expectations from stakeholders, regulators, and society broadly regarding climate-related investments and reporting.