Denmark’s fourth-largest pension fund manager is addressing its concerns over stranded assets by selling off its investments in five Canadian fossils and assessing its holdings with 44 other oil and gas companies.
“We have decided to divest from certain companies involved in energy and carbon-intensive extraction methods, which we do not believe fit in a low-carbon economy,” said Pelle Pedersen, head of responsible investment at PKA. “This is not to say the oil and gas sector will be disrupted tomorrow, but we have to accept what is happening right in front of our eyes. The energy sector is changing” at very high speed.
With holdings worth €33.6 billion, PKA manages assets for three separate funds with 275,000 members. The fund’s action follows a decision last year by the Norwegian government pension fund, Norges Bank, to drop companies that rely on coal for more than 30% of their revenue or activity.
“Pension funds and other large investors are almost universally anticipating a transition to a low-carbon future, and are therefore taking steps to mitigate their losses,” CleanTechnica notes. “There are those investors looking to make socially-aware investment decisions, but as the transition continues to gain momentum, the business case for divesting from fossil fuel companies and production is becoming more and more clear.”