Thermal coal is used for energy production and can be substituted by gas, wind solar or nuclear power. Emissions from burning coal contribute significantly to global warming. We do not refrain from investing in producers of metallurgical coal that is needed for steel production, since no large scale substitute for metallurgical coal exists yet.
Furthermore, we have decided to refrain from investing in companies extracting oil from tar sands as it has significant negative environmental consequences and produces more CO2 than conventional oil.
“We invest for value while also investing to values addressing the needs of our customers, 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 that affects 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,”
- Ulrika Hasselgren, Head of Responsible Investment, Danske Bank.
Danske Bank refrains from investing in these companies with a revenue of 30 percent or more coming from extraction of thermal coal, generation of power based coal and extraction of coal and coal based powered power generation combined. However, we give emphasis to the strategical ambitions on energy transition as well as the companies’ ability to meet their goals. Therefore, we support companies, which are in the process of transforming to more renewable energy sources, and monitor their progress.
The investment restrictions will be fully implemented during the first quarter of 2018 and will embrace investments in Danica Pension as well. The revised exclusion list will be published end of first quarter 2018.