In this episode of V-FM Pensions, hosts Darren and Nico chat to Nordea's Head of Responsible Investment, Eric Pedersen. This is part of a series of interviews recorded at the World Pensions Summit. The central tenet of Eric's argument is true decarbonisation requires investing in and engaging with high-emitting sectors rather than divesting from them. Nordea have a created a Climate Transition Engagement Fund that targets companies demonstrating credible pathways to reduce emissions, supporting practical, real-world impact over superficial portfolio footprint cuts. Eric highlights how pragmatic engagement and long-term stewardship can deliver both climate progress and competitive returns. We also take the opportunity to catch up on the latest news, discussing the recent LSE/FTSE letter to the Chancellor begging for pension funds to invest in UK equites and also talk a bit about salary sacrifice and Budget 2025.