Active ownership
P+ exercises active ownership, and dialogue with portfolio companies is an essential tool in the work with responsible investments.
The pensions fund's work with responsible investing and hence active ownership is risk-based and adjusted to the type and structure of the investment as well as potential risks related to persons, environment and the pension fund's investments. The pension fund must assess and consider the investments principal adverse impact on sustainability factors and assess and consider sustainability risks which may affect the pension fund's investments. This also impacts on the active ownership.
P+ enters into dialogue with companies about:
- Rehabilitation of potential adverse impact on environmental and social matters.
- Preventing future adverse impact.
- How companies can promote environmental and social characteristics.
- Development of companies' long-term value creation and reduction of financial risks.
Dialogue
The dialogue with portolio companies is handled by different parties, including bilateral, through external advisors and investment managers as well as investment cooperations.
The pension fund co-operates with the English consultancy firm EOS (Equity Ownership Services) on handling a substantial part of P+'s dialogues with portfolio companies. EOS is specialised in screening of, dialogue with and voting in listed companies. The consultancy firm represents investors from all over the world. When EOS engages in dialogue with a company, they do it on behalf of all investors in the company.
Voting
When voting at listed companies' general meetings, we use our influence in favour of proposals that support a responsible development. You can read more about our approach to voting here, and you can see how we have voted at general meetings here
Observation list
P+ wants to be transparent in its work with the companies that the pension fund currently monitors closely. Accordingly, we publish our observation list which provides an overview of the companies that we have extra focus on or monitor closely. See our latest observation list here (only available in Danish).
Restriction criteria
P+ invests as far as possible not in companies and countries included in the pension fund's restriction list. Companies and countries are placed on the restriction list for different reasons.
|
Reason |
Description |
|
Policy for responsible investments |
Companies that systematically prove to have significant environmental, social and/or management issues and active ownership is pointless. |
|
Controversial weapons |
Companies that violate UN treaties and conventions which Denmark has signed related to nuclear weapons, anti-personnel mines, cluster ammunition, chemical weapons, biological weapons and other types of controversial weapons. |
|
Tobacco |
Companies producing cigarettes and other tobacco products, and where more than 60 percent of the revenue come from this activity. |
|
Coal mining companies |
Companies with a revenue from coal mining. |
|
Oil and gas companies |
Companies where more than 30 percent of the revenue come from extraction of conventional oil and/or gas, and where more than 20 percent of the revenue come from extraction of unconventional oil and/or gas (including oil sands). Companies are retained in the portfolio when the majority of their revenue come from conventional gas. + Large companies with a revenue from extraction of oil and/or gas which do not fall within above-mentioned limits, but their business model is assessed to have a substantial adverse impact on the climate and/or where active ownership has proven pointless. |
|
Utility companies |
Companies where more than 25 percent of the revenue come from coal-fired power stations and companies with an installed capacity for coal-fired production of electricity of more than 10,000 MW are screened and assessed in relation to information about i.a. which companies that extend their coal consumption, violate both the 25 percent limit and the 10,000 MW limit and other information about the companies. Utility companies are deselected on these grounds. |
|
Overall conditions in the country |
Countries are deselected based on an assessment of state institutions' governance as well as environmental and social conditions in the country. |
When a company or a country is put on the restricted list, the pension fund cannot invest further in the company or the country’s state bonds. When the market conditions allow for it, the pension fund must divest the investment.
Restriction of unlisted companies and companies owning forest, infrastructure and real estate often needs to be done in agreement with other investors.
Active ownership, dialogue, observation list and restriction apply to all P+'s products. You can read more about our savings product, P+ Sustainable, which offers improved focus on sustainable choices here
Restricted list
P+'s restricted list includes the names of a number of companies and countries which the pension fund does not invest in. P+ reconsiders annually if companies and countries on the restricted list must continue being on the list, or if the companies and countries have improved sufficiently to be included again.
See the latest restricted list here (only available in Danish).