At LD Pensions, we base our decisions on divestment and exclusion on our Responsible Investment Policy. Individual cases are assessed on a case-by-case basis, taking into account analyses and recommendations from our Partners.
We regularly screen our investments for issues that may conflict with our principles. Companies are excluded when dialogue does not lead to improvements, or where their practices are incompatible with our principles for responsible investment.
Exclusion is the final step
If, over time, the dialogue with the company does not lead to sufficient improvements, this may result in exclusion.
In the event of exclusion, we divest our investment and can no longer invest in the company. At the same time, we lose the opportunity to influence the company through dialogue and by casting votes at general meetings. We therefore only resort to exclusion when dialogue has repeatedly failed to yield results.
Exclusion is therefore an important – but last resort – tool in our active ownership.
What can lead to exclusion?
Exclusion is based on a set of fixed criteria, which ensure a consistent and transparent approach across our investments.
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What is excluded?
Government bonds and securities issued by companies with a 100 per cent government guarantee or a government ownership stake of 50 per cent or more from countries involved in serious and systematic human rights violations, including repeated breaches of international law and norms, and where dialogue is not deemed likely to lead to improvements.
Partners
Verisk Maplecroft
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What is excluded?
The production of cluster bombs, chemical weapons and the like, as well as involvement in the production or upgrading of nuclear weapons or essential components thereof outside Europe.
Partners
Sustainalytics
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What is excluded?
Companies in which the extraction of thermal coal or oil from tar sands accounts for more than 5 per cent of turnover, as well as companies that hold a stake of more than 25% in undertakings where the extraction of thermal coal accounts for more than 5% of the subsidiaries’ turnover.
Partners
Sustainalytics
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What is excluded?
Oil and gas companies that make investments which are incompatible with the Paris Agreement and which actively undermine climate action, including through lobbying.
Partners
Climate Action 100
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What is excluded?
Companies that deliberately or repeatedly breach the applicable legislation in the countries in which they operate, and/or violate widely recognised international conventions and standards, and are not open to dialogue regarding remedial action.
Partners
Sustainalytics & Federated Hermes EOS
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What is excluded?
Companies excluded on the basis of a specific and individual assessment, where risks are deemed incompatible with LD Pensions’ principles.
Partners
Federated Hermes EOS
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What is excluded?
Companies and countries that contribute to actions contrary to conventions adopted by the UN or the EU and to which Denmark is a party.
We follow up on a regular basis
We monitor the companies on our exclusion list and regularly assess whether any improvements have been made.
If a company changes its practices and complies with our principles, it may be removed from the exclusion list and reinstated in the investment universe.
