Environmental factors
Denmark has substantial green ambitions and strives to be a frontrunner when it comes to mitigating climate change and implementing the necessary transition of our society. At the centre of the green ambitions is the Climate Act of 2019, according to which Denmark must reduce its greenhouse gas emissions by 70 per cent by 2030 compared to 1990 levels. In addition, the Climate Act also commits Denmark to achieving climate neutrality by 2050 at the latest, considering the Paris Agreement target of limiting the global temperature rise to 1.5 degrees Celsius.
Social factors
Denmark is generally characterised by high equality, e.g. low income differences, a comprehensive social welfare system, and high labour market participation. In international comparisons Denmark also ranks in the top of multiple recognised indices.
Governance factors
Denmark has a history of sound governance and institutional strength. This is reflected in the credit rating of Denmark and supported by numerous governance indicators and indices.