Novo Nordisk has positioned itself at the absolute forefront when it comes to the environment and sustainability. Unlike many other large companies, the Danish pharmaceutical giant has even written environmental concerns into its articles of association as one of the company's three main purposes.
Now Danwatch can document that Novo Nordisk - despite its green promises - is investing the pension plans of 8,000 American employees in the world's most climate-damaging coal and oil companies. Of the total pension assets of its American employees of DKK 17 billion, at least DKK 250 million is invested in fossil fuel companies. This is evident from a list that has been reported to the US Financial Supervisory Authority.
In addition to oil giants, coal and unconventional oil from tar sands, which have long been excluded by Danish pension companies for extreme environmental pollution, are also among the investments.
- It is embarrassing that Novo Nordisk does not at least offer pension savings for its American employees that are in line with Danish pension funds in terms of climate considerations, says Bjarke Møller, director of the independent environmental organization, the Green Transition Council.
In addition to the world's largest coal companies, Novo Nordisk's investments also include shares from a number of large-emitting oil giants such as ExxonMobil, Chevron, Saudi Aramco, PetroChina and several others, including the tar sands companies Cenovus Energy, Canadian Natural Resources and Suncor Energy.
Novo Nordisk: Legislation restricts
Environmental and social responsibility is otherwise written into Novo Nordisk purpose clause in the articles of association. It states that "the company strives to operate its business in an economically, environmentally and socially responsible manner."
In an email to Danwatch, Novo Nordisk explains that it is limited by American law:
“According to current regulations from the ‘Department of Labor’, we are legally prevented from offering opportunities consisting solely of, for example, ‘sustainable shares’ that do not aim to create the best possible investment return and/or take into account financial risks.”
However, this view is challenged by the American nonprofit organization As You Sow, which believes that the American regulations allow for the inclusion of sustainable considerations in investments.
“This is stated in the regulations and was confirmed in a recent legal decision in Texas,” says Andrew Behar, CEO of As You Sow, to Danwatch.
The mapping of Novo Nordisk investments in fossil fuel companies comes after Danwatch was able to uncover on Sunday how the pharmaceutical giant invested employees' retirement savings in fast food restaurants while the company makes a fortune on diet pills.
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