Danske Bank is in the process of implementing a new policy for investments in fossil fuel companies. The policy, announced in February 2024, aims to ensure that future investments focus on companies with realistic plans for transitioning to a more sustainable future. The bank writes this on its website.
- The policy reflects the preferences of the majority of our customers and our commitment to delivering competitive returns on a responsible basis, says Erik Eliasson, Head of Responsible Investments at Danske Bank.
According to Danske Bank, the policy will result in the exclusion of fossil companies that do not meet the bank's criteria for transition plans "Net Zero Pathway Framework" model, which is primarily created based on data and methods from the Transition Pathway Initiative (TPI).
Only a few companies are being de-selected
It is expected that a smaller proportion of companies in the bank's portfolios will be de-selected, but precise figures depend on the ongoing screening of some companies will also achieve increased investments, which is why Danske Bank expects to have an unchanged exposure to investments in fossil companies in the short term.
The excluded companies will typically be those that do not have concrete or credible strategies to reduce their CO2 footprint and support the transition to sustainable energy. The majority of the adjustment is expected to be completed before the autumn.
Thomas Otbo, Investment Director at Danske Bank Asset Management, states that the policy has led to increased selectivity in the bank's investments.
- The biggest difference is that we primarily focus on fossil companies that are working to future-proof their business. We believe that this is in the best interest of our investment clients, says Thomas Otbo.
He emphasizes that exclusions can change as the companies develop.
- Our exclusions of companies are not static and can change as the companies change and develop. We continuously assess all companies in our portfolios to ensure our clients the best possible return within the framework of Danske Bank's policy for responsible investments - and this of course also applies to our investments in fossil fuel companies.
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