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In February 2024, Danske Bank announced the introduction of a new methodology for investing in companies in the fossil fuel sector, with enhanced focus on investments in companies that have credible transition plans to support the shift to a more sustainable society and to future-proof their business. With this methodology, we aim to further align with our customers’ investment preferences.

We have now completed the implementation of the methodology in our Danske Invest and Danica investment products, cementing our ambition to focus investments on companies that are already on – or progressing towards – a net-zero transition pathway in accordance with the applied model.

Aligned with customer preferences
“Our new fossil fuels investment approach aligns with the preferences of the majority of our customers while underscoring our commitment to achieving competitive returns on a responsible basis,” says Erik Eliasson, Head of Responsible Investment at Danske Bank. 

To accommodate different customer preferences and other factors across markets, selected Danske Invest funds are, however, not covered by this methodology, just as we also have investment funds that exclude all investments in fossil fuel companies.

Erik Eliasson further highlights that our approach and the composition of our portfolios are not static.

“Our approach to investing in fossil fuel companies will continue to evolve in line with investor preferences, regulatory developments and developments in society,” he says.

A more selective investment strategy 
Our policy on investments in fossil fuel companies is aligned with Danske Bank’s Responsible Investment Policy and with our Climate Action Plan.  As a result of the new methodology, our investment universe now includes around 270 companies involved in fossil fuels as opposed to around 2,000 companies in 2024.

While the methodology has led to the divestment of a number of fossil fuel companies from our portfolios, we have increased our investments in other companies, leaving our overall exposure to companies involved in the fossil fuel sector relatively unchanged. 

Consequently, we now focus primarily on fossil fuel companies that are working to future-proof their business to address the challenges and needs of the future.

“We will continue to invest in companies working in the fossil fuel sector to reflect the global economy and global energy supply. However, in alignment with the majority of our customers’ preferences, we have decided to become even more selective in our fossil fuels investments for most of our investment products. And we firmly believe this to be in the best long-term interest of our investment customers,” says Thomas Otbo, CIO at Danske Bank Asset Management.  

He emphasises that the methodology affects only a small part of our total investments because fossil fuel companies make up only a very limited share of our portfolios.