UPDATED: Danske Bank and Danica Pension have reduced the number of fossil fuel companies they will invest in from around 2,000 to around 270. This is due to the implementation of a new policy for investing in fossil fuel companies. The Danske Bank Group announced this in a press release.
To be included in the list of approved companies, an energy company with oil or gas production must have realistic plans to achieve net-zero emissions of carbon-containing gas. This excludes, among others, large American oil companies such as Exxon Mobil, Conoco Phillips and Chevron. This is according to a list published at the same time as the announcement. The list also includes Norway's Equinor and Britain's Shell.
Danske Bank announced in February 2024 that it would divest fossil fuel companies that did not meet its targets, but it has only now reached its goal.
- Our new approach to investments in fossil fuel companies meets the preferences of the majority of our customers and at the same time emphasizes our clear ambition to deliver competitive returns on a responsible basis, says Erik Eliasson, Head of Responsible Investments at Danske Bank.
However, the press release states that certain investment funds offered by Danske Invest are not included in the new list. But conversely, there are also Danske Invest funds that do not invest in fossil fuel companies at all.
Will not affect pension returns
At Danica Pension, the consequence of the list has been taken and some investments have been moved around. This is explained by Investment Manager Andreas Stang.
- We have had to make some adjustments because there were companies that did not meet the requirements. The vast majority of our investments have been in a small handful of companies, and we have then replaced them with companies in the same sector that are still relevant in an investment context, he says.
Andreas Stang does not expect the changes to affect pension returns noticeably in either direction. But he hopes that it can create greater clarity and give pension customers better opportunities to decide where to invest their money.
- When we ask customers, most have no problem investing in oil or gas if they are companies that are pushing in the right direction, and that is the need we have tried to meet. But we also have a product for customers who either want to opt out of oil or gas altogether, or who themselves want to actively invest more in the sector, he says.
Danske Bank emphasizes that the list is dynamic and will therefore be revised continuously.
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