Join us at the Annual Nordics Sweden Institutional Forum
Danish pension fund Sampension has excluded nine upstream oil and gas companies from its portfolio and narrowed its fossil fuel investments to seven European energy companies, citing European energy security concerns amid the Iran and Ukraine conflicts.
The Copenhagen-based fund, which manages retirement assets for Danish workers, said it would retain stakes in Aker BP, BP, Eni, Equinor, OMV, Repsol and Shell, while divesting from nine companies — seven American, one Chinese and one European — following an internal analysis of its upstream holdings.
“As we see it, the Iran war — in continuation of the Ukraine war — has emphasized the need for European investors to have a nuanced approach to fossil investments,” said Mads Smith Hansen, chief executive officer at the pension, in a press release. “An approach that both takes into account the increased need to ensure European security of supply and at the same time supports the green transition in the longer term.”
Smith Hansen said engagement with American upstream companies had reached an impasse, while the remaining European holdings remained strategically important for European energy security and offered a basis for shareholder engagement on sustainability.
The fund said it had voted against the re-election of board chairs and directors responsible for sustainability and climate responsibilities at this spring’s general meetings and backed a number of climate-related shareholder proposals — including one at Equinor calling for disclosure of risks tied to the Norwegian energy company’s Arctic fossil projects.
Smith Hansen warned the fund’s patience was not unlimited. “We will also continuously reconsider our investments if we do not see the progress that we expect from the companies,” he said, adding that several of the retained companies had moved in the wrong direction on climate in recent years.
The fund has also co-initiated an open letter to the European Commission alongside Danish development organization Mellemfolkeligt Samvirke, urging the EU to maintain its opposition to Arctic oil and gas extraction. The letter has attracted 127 signatories including investors, NGOs, researchers, trade unions, companies and think tanks.
Smith Hansen called on policymakers to strengthen the enabling conditions for the green transition, cautioning against EU moves to open new fossil fuel extraction in the Arctic. “It is a political responsibility to ensure this,” he said.