A $120 Billion Danish Investor Has Big Plans for Sustainability

One of Europe’s biggest pension funds is expecting double-digit returns on a new Danish investment vehicle that’s based on the United Nation’s sustainable development goals.

ATP, which has about $120 billion in assets under management and is based north of Copenhagen, predicts it will make about 10-12 percent with its bet on the Danish SDG Investment Fund, which was launched on June 7. Risks will be limited because of the government’s involvement, according to ATP’s chief executive officer, Christian Hyldahl.

Hyldahl says the logic of investing in assets that track clear ethical and environmental standards hasn’t been dented by the ...