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In brief: PKA starts tax review

Tax is an underexplored topic when it comes to sustainability in private markets investment.

PKA, the €47 billion Danish public pension scheme, has started to review its portfolio in search of companies not paying sufficient corporation tax, the pension said on Sunday.

In line with an OECD statement that all companies should pay corporation tax of at least 15 percent from 2023, the pension will screen portfolio companies – both listed and unlisted – and engage with those that do not meet the minimum requirements. PKA is an active investor in private markets funds across asset classes.

“We are already starting to review the largest companies we invest in to see if they are moving in the right direction,” said PKA chief executive Jon Johnsen.

“It is no different to what we do with, for example, CO2 emissions […] we use our investments to influence the company’s behaviour,” continued Johnsen.

Tax is a relatively underexplored topic when it comes to sustainability in private markets investment. Canadian pension fund CDPQ recently told New Private Markets how tax, and the imperative to pay a fair amount of it, had become a key point of negotiation between it and some of its investment partners.