Increasing and protecting the value of investments

Managing environmental and social risks and ensuring responsible corporate governance practices are preconditions for protecting and increasing the value of our customers’ investments, and they can help promote positive societal change over the long term. 

Climate change - a megatrend with economic consequences

Greenhouse gases in the atmosphere could possibly shake the foundation of the global economy, but with world leaders committed to reducing emissions, the coming decades should see significant investments in green energy.  Read more about how investors can influence climate change (in Danish).

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“Climate change is a megatrend for investors, as the resulting problems will not simply disappear without action being taken – but there has never been greater political will to reduce the effects of man-made climate change.”


Ben Wicks
Advisor to Danske Invest on
climate-related investments

Carbon footprint measurements on investment funds

A company’s carbon intensity and preparedness for climate change challenges are an integral part of our environmental evaluation of a company. As signatory to the Montreal Carbon Pledge, Danske Bank is committed to publishing the carbon footprint of a selected range of investment funds.

See the results for 2016

Our positions

We have published six position statements that describe how we work with industries known to have elevated environmental, social and governance risks. The statements focus on credit and investment procedures.

  • 30. maj 2017Danske Bank Position Statement Agriculture
  • 30. maj 2017Danske Bank Position Statement Climate Change
  • 30. maj 2017Danske Bank Position Statement Forestry
  • 30. maj 2017Danske Bank Position Statement Fossil Fuels
  • 30. maj 2017Danske Bank Position Statement Mining and Metals
  • 30. maj 2017Danske Bank Position Statement Arms and Defence

How we work

Integrating ESG in investment decisions

We integrate environmental, social and governance risks in our investment analysis and decision-making process. 

Engage and initiatives 

We engage with companies to understand how they handle material ESG risks and encourage them to comply with international corporate responsibility principles.

Dialogue and voting

We hold dialogues with companies regularly as part of our general investment practice and exercise our ownership rights by voting at their annual general meetings when appropriate. 

Screening and exclusion

We screen investments to ensure that companies work in accordance with international standards and guidelines.

Voting

An evaluation of companies' corporate governance forms an integral part of our investment process.

We focus our ownership efforts on companies where it can have substantial impact, i.e. primarily companies domiciled in the Nordic countries, investment strategies with significant holdings and where clients have authorised us to do so.

In 2016, we cast votes by proxy at 235 company general meetings.

Engagement

Our work with responsible investments is based on international norms and conventions and dialogue is our main long-term method for contributing to sustainable development. We engage with portfolio companies and fund managers and we encourage companies we invest in to respect these principles and pursue transparency on their corresponding management efforts. If we consider that companies are not complying with the international norms and conventions that we adhere to, we contact them, either independently or in collaborative engagements with other investors through the UN supported Principles of Responsible Investments (PRI). Examples of collaborative engagement themes include oil and gas exploration in offshore Arctic and no-go commitments from extractive companies (oil, gas and mining) relating to exploration or operations in UNESCO natural World Heritage Sites.

 

In the first half of 2017, we have through our third party held dialogues regarding specific sustainability issues with 13 companies. Read more here

Policies

  • 03. okt 2016Responsibility Policy
  • 01. nov 2016Stakeholder Policy
  • 02. feb 2017Statement of Modern Slavery 2016
  • 03. okt 2016Responsible Investment Policy

Dealing with controversial issues

Controversial issues
Food and commodities
Tobacco
Government bonds
Area of conflict
Controversial issues

Dealing with controversial issues

Investing responsibly poses many challenges in which controversial issues and complex problems need to be addressed. Read more about concrete issues and how we handle them when we invest on behalf of our customers. 

Food and commodities

Food and commodities

Investments in commodities and basic foodstuffs through structured products and financial speculation have been linked by several sources (such as the FAO and UNTCAD) to increases and heavy volatility in commodities prices. The poorest people in the world are hurt the most by these effects on prices. Read about how we seek to ensure that Danske Bank does not speculate in the commodities markets for our own account or our customers' accounts.

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Tobacco

Tobacco
Among Danske Bank’s customers as well as the general population, opinions on tobacco and smoking are still divided. Read about our position on the tobacco industry when we invest.

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Government bonds

Government bonds
When we invest in government bonds, we cannot exercise active ownership, and it is difficult for investors to know what becomes of their money. Read how we approach this issue

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Area of conflict

Areas of conflict

Danske Bank’s customers must feel certain that we invest their funds in a responsible manner regardless of the region where the companies operate. We therefore pay special attention to areas of conflict. Read more about what we expect of companies that do business in high-risk areas.

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New sustainable fund

Our new European Corporate Sustainable Bond fund invests in bonds issued by companies that meet enhanced responsible investment criteria. The fund has a cautious approach to controversial industries, has a heightened ESG awareness, and integrates innovative sustainability thinking and research in its investment decisions.

Knowledge sharing increases attention on responsible investing

Danske Bank actively participates in international and regional forums that advance the understanding and practice of responsible investing. By collaborating with like-minded investors and stakeholders, we seek to contribute to knowledge building and sharing as the field develops. 
  • Carbon Disclosure Project
    Danske Bank is a signatory to the CDP, a not-for-profit organisation that collects and shares information on greenhouse gas emissions and climate change strategies to enable investors to mitigate risk and capitalise on opportunities related to climate change.

    Learn more
  • Institutional Investor Group on Climate Change
    Danske Bank is a member of the IIGCC. The IIGCC consists of more than 90 members, including some of the largest pension funds and asset managers in Europe, and represents €7.5 trillion in assets. The IIGCC’s mission is to provide a collaborative platform to encourage public policies, investment practices and corporate behaviour that address the long-term risks and opportunities associated with climate change.

    Learn more
  • Principles for Responsible Investments
    Danske Bank has signed the UN-backed Principles for Responsible Investments, which is an investor initiative launched in 2006 with more than 1,600 signatories globally.

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  • United Nations Environment Programme Finance Initiative
    Danske Bank is a member of the UNEPFI, which  is a global partnership between UNEP and the financial sector. More than 200 institutions, including banks, insurers and fund managers, work with UNEP to understand the effects of environmental and social considerations on financial performance.

    Learn more

Environmental impact

We support the transition to a low-carbon economy directly through our operations and indirectly through cooperation with customers, portfolio companies and business partners.
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Societal challenges

We help solve some of the fundamental challenges that society faces today. Find out how we build financial confidence, increase access to digital services and help startups scale.
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Our approach

At Danske Bank, we integrate corporate responsibility in our core business, work with partners and stakeholders, and report on our progress regularly.
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