Sampension, the Danish labour-market firm, has blacklisted a further eight fossil fuel companies, leaving just 11 stocks from the sector in its DKK271bn (£36.3bn) investment portfolio.
In a statement on Friday, the pension fund said the failure of its efforts to engage with the companies over ESG issues had been the reason it excluded the eight firms.
The new exclusions are Asian and US companies, Sampension said, adding that meant there were now 35 oil and gas companies on its blacklist – while 11 fossil fuel companies remain in the portfolio, mainly European ones.
IPE has asked Sampension to name the eight companies and disclose the value of the latest batch of divestments.
Sampension said in the statement that its participation in dialogues with companies on climate, human or labour rights often led to positive results.
“However, there are cases where the dialogue is fruitless – or is not likely to bear fruit within a manageable time frame. Therefore, a further eight fossil energy companies are now excluded,” the Copenhagen-based firm said.
Jacob Ehlerth Jørgensen, head of responsible investments, said: “When we throw an investment out, it is often fraught with dilemma, because at the same time, were are throwing away our influence as a shareholder.
“On the other hand, there are limits to how long we can be in dialogue about a climate strategy, for example, before we have to see concrete results,” he said.
Ehlerth Jørgensen said Sampension had set a deadline for the fossil fuel companies it was engaging with, saying the firms had to have an adequate climate strategy in place, at the latest when they reported on the 2025 financial year. That plan had to make it likely the company would be able to meet the requirements for zero greenhouse gas emissions by 2050.
In April, Sampension was able to keep Shell in its portfolio after the oil giant agreed to open up about its climate lobbying activities in developing countries.
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