AMWatch

Danske Invest adds 90 firms to exclusion list after Paris pledge

Ulrika Hasselgren, Head of Responsible Investing at Danske Bank, has been busy since starting work at Danske Bank a month ago. In her team's first public move, 90 companies in the thermal coal and tar sand businesses are being removed from the bank's investment universe.

Photo: /ritzau/AP/Huang Shi Peng

Only a month after sitting down in her new office for the first time, Danske Bank's incoming head of responsible investment is ready to make changes in the bank's investment universe. Ulrika Hasselgren and her team have decided to add 90 companies to the bank's exclusion list, as a consequence of the group's endorsement of the Paris Pledge for Action to help limit global warming to a maximum of 2 degrees Celsius.

The companies — which make 30 percent or more of their revenue from thermal coal and/or tar sands or generate power from these energy sources — will not be a part of Danske Bank's investment universe in the future. The decision affects all funds under Danske Invest, all of Danica Pension's products and the strategic portfolios of Danske Bank, but ETFs and external funds are not subject to it.

KLP, Norway's largest municipal pensions provider, decided in November 2017 to blacklist companies that derive more than 50 percent of their revenues from coal-based activities. Nordea's threshold for coal companies lies at 30 percent of generated revenue.

Substitutes for coal are available

Danske Bank says that because thermal coal can be substituted by gas, wind, solar or nuclear power, it will not invest in these activities. However, since metallurgical coal — needed for steel production — does not yet have a substitute, this remains an area in which the bank can invest.

"We invest for value while also being mindful of our customers' needs, our role in society and the evolving landscape of sustainability standards around the world. Thermal coal and tar sands are some of the most compromising fossil-fuel resources which affect the environment significantly. These investment restrictions are one of our actions in 2018 as part of our commitment to sustainable investments in the years to come," says Ulrika Hasselgren, Head of Responsible Investment, Danske Bank to AMWatch.

The investment restrictions will be fully implemented during the first quarter of 2018 and relate to an amount of invested capital that exceeds "hundreds of millions of Danish kroner" according to Danske Bank. The revised exclusion list will be published at the end of March.

Frontpage right now

AP7 on venture capital: "You have to stay disciplined"

At Stockholm-based pension fund AP7, Per Olofsson is a one-man-band, working full time managing investments into private equity and venture capital through external partners. Picking winners requires discipline and ongoing due diligence, he tells AMWatch.

Wealth head still in race to replace Danske's CEO

Thomas Borgen is continuing as Danske Bank's CEO until a successor is in place. The bank's board is reluctant to say whether the next chief executive will be found internally -- or brought in from outside the group.

Blackstone eyes $18 billion capital raise for its biggest RE fund

The private equity industry’s largest real estate investor is planning a broad replica of the strategy behind its last fund -- investing in distressed properties globally, according to informed sources. Blackstone’s previous fund drew in $15.8 billion in 2015.

Related articles

amwatch trial

Latest news

Jobs

See all

See all

Latest news from FinansWatch (dk)

Latest news from EnergyWatch

Latest news from ShippingWatch