Danish pension fund PKA narrows investment rules in coal firms
The Danish pension scheme for healthcare professionals PKA has excluded another 20 coal companies from its investment universe and tightened investment rules as it seeks to further not invest in firms whose revenue derives more than 20% from coal.
In 2015, PKA had been the first pension company in Denmark to blacklist coal companies from an economic and climate point of view. To date, the Danish institutional investor has excluded 89 coal companies in addition to 68 oil and gas companies and a car manufacturer. Over the last five years, PKA has more than doubled its 'green' investments amounting now to over DKK 30bn (€4bn).
Dewi Dylander, deputy director and head of responsible investment at PKA, said: “It is absolutely central for PKA to be an ambitious and responsible green investor, and we are constantly working to bring our investment portfolio in line with the objectives of the Paris Agreement. There is no room for companies that are not willing to adapt to a reality with less coal and more green energy, and therefore we are now tightening the requirements for the coal sector and excluding a large number of coal companies.”
In addition, dialogue through the Climate Action 100+ initiative keeps pursuing between PKA and some 12 companies, whose coal turnover currently exceeds 20% of their overall revenue and that are willing to shift towards more sustainable energy. These 12 coal companies, along with all other coal, oil and gas companies, will be assessed by the pension scheme by the end of 2022 at the latest. If they have not incorporated the Paris Agreement's objectives into their business strategy by this deadline, they will be excluded.
“These are companies where we make an exception because they have listened to the call that we and a large number of other investors have made to switch away from coal. We want to continue that dialogue so that we can keep the companies up to their positive promises. We basically believe that we can create the biggest change by pushing the companies in a greener direction,” commented Dewi Dylander.