Thermal coal and tar sand are two of the energy sources with the highest levels of CO2 emissions. Tar sand is one of the most CO2-intensive ways to produce crude oil, and it emits three times as much CO2 as conventional oil. Thermal coal also emits a high level of other pollutants. We do not believe that increasing activity related to these forms of energy is a responsible way of dealing with climate risks – and such activity is detrimental to the environmental and contributes significantly to global warming. Because of this, we do not invest in companies that derive more than 5% of their revenue from thermal coal mining, thermal coal energy or a combination of these. Nor do we invest in companies that derive more than 5% of their revenue from the extraction of oil from tar sands or peat-fired power generation.
These restrictions are part of our commitment to phasing out investments in companies involved in the three fossil fuel types by 2030 in the EU and OECD and by 2040 in the rest of the world, in line with the requirements of the Paris Agreement.
We may make exemptions if a company can demonstrate credible transition targets for coal and meets level 3 criteria of the Transition Pathway Initiative framework. This includes setting quantitative targets for reducing GHG emissions, disclosing scope 3 GHG emissions and being transparent about lobbying activities related to the climate agenda.
These restrictions are based on Danske Bank’s Sustainability Position Statements.