Stockholm (NordSIP) – Following the publication of its new standards for responsible investments at the start of November, Danish mutual pension fund P+ has now announced it will start to exclude and divest from coal-extracting companies.
Following a review of its investment portfolio, P+ identified 40 companies worth DKK250 million that it will divest and remove from its portfolio by the end of 2020, including BHP and Vale. This action is the result of the decisions made at the August AGM, where a majority voted in favor of a membership proposal to sell shares in coal companies. Proceeds from the divestments will be reinvested to continue to ensure a good and stable return for the members.
The exclusion from all coal companies fulfills the wish of a large part of the pension members that their pension not be invested in the extraction of coal. In the future, the pension fund will ensure that it does not include coal companies into our portfolio, according to deputy director of P + Kirstine Lund Christiansen.
The new rules require divestment from companies where more than 5% of turnover comes from the extraction of coal. Companies and business groups which make up more than 0.05% of the equity benchmark are to be assessed qualitatively based on two criteria, regarding which units in the company extract coal and whether there is a plan for the company to stop extracting coal.