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LD Pensions voted at Alphabet’s Annual General Meeting on 5 June 2026, where we supported a number of shareholder proposals on increased transparency and the responsible management of significant societal risks.

Alphabet is one of the world’s largest technology companies and is behind, amongst other things, Google, YouTube, Google Cloud and a range of AI and data-driven services. The company plays a central role in the global digital infrastructure and has a major influence on how information, data and advanced technologies are used worldwide. This places high demands on responsibility, transparency and long-term value creation.

Focus on governance, technology and responsibility
At the annual general meeting, LD Pensions voted against the re-election of several board members and against the company’s remuneration report. This reflects LD Pensions’ view that board responsibility should be strengthened.

In LD Pensions, several shareholder proposals were voted in favour of, aimed at strengthening Alphabet’s reporting and transparency regarding its work on human rights, societal impact and the risks associated with the use of advanced technologies. We want the company to be able to demonstrate how it identifies and prevents material risks, and how it manages the consequences in practice.

None of the shareholder proposals that LD Pensions voted for were adopted. However, several of the proposals received support from a significant proportion of the independent shareholders. This underlines the fact that there is a growing focus amongst investors on how large technology companies are working responsibly with technology.

Active ownership in a global technology company
: Alphabet is an example of a company where rapid technological development, major investments in artificial intelligence and global scale place high demands on governance and responsible risk management. When technology affects access to information, data protection, democratic processes and human rights, it is crucial that the company’s board of directors exercises adequate oversight of the associated risks.

For LD Pensions, active ownership is about sending a clear signal regarding our expectations of the company’s management, transparency and handling of significant ESG risks. Even when shareholder proposals do not secure a majority, voting can help maintain the focus on responsible development and the use of technology.

As an investor in Palantir Technologies, LD Pensions voted in favour of several shareholder proposals aimed at strengthening the company’s work on human rights and the responsible use of technology.

Palantir is an American technology company that develops advanced analytics and data platforms for, amongst others, the defence sector, the police, intelligence services and immigration authorities. This has raised concerns about whether the technology could contribute to human rights violations, including in military operations, the surveillance of civilians and the treatment of migrants.

Focus on transparency and human rights

At the annual general meeting, LD Pensions voted in favour of a shareholder proposal for an independent report on Palantir’s handling of human rights in conflict and high-risk areas. In LD Pensions, the board also voted in favour of a proposal to publish an analysis of the risk of human rights violations in connection with the company’s products and services.

The proposals were not adopted, but received support from several major investors. This demonstrates a continued focus on how Palantir manages and documents human rights risks, particularly in conflict and high-risk areas.

Active ownership in high-risk
companies: Palantir is an example of a company where advanced technology, artificial intelligence and government contracts are closely linked to significant human rights and governance risks. 

The company has a formal human rights policy and refers to internal due diligence processes. However, several investors consider that there is a lack of sufficient public documentation on how these processes work in practice and how the board of directors oversees high-risk areas.

In LD Pensions, voting and dialogue are used to promote long-term value creation, good corporate governance and the responsible management of material ESG risks in the companies in which we invest.

Read more about LD Pensions’ active ownership here.

Meta held its annual general meeting on 27 May 2026. At the meeting, LD Pensions voted in favour of a number of shareholder proposals concerning, amongst other things, human rights, data protection, online hate speech, voting rights and greater transparency.

LD Pensions invests in Meta Platforms, one of the world’s largest technology companies, which owns, amongst others, Facebook, Instagram and WhatsApp. Exercising our voting rights at general meetings of the companies in which we invest is a key part of LD Pensions’ active ownership approach.

How LD Pensions voted at Meta’s general meeting

At the Annual General Meeting, LD Pensions voted in favour of a number of shareholder proposals aimed at strengthening the company’s work on human rights and improving the handling of online hate speech and harmful content on its platforms. In addition, we voted in favour of proposals for enhanced data protection in relation to generative AI chatbots, as well as greater transparency regarding voting rights across share classes.

We also voted in favour of a proposal to abolish Meta’s share structure, which provides for different voting rights, in favour of the ‘one share, one vote’ principle. In LD Pensions’ view, shareholders’ voting rights should be proportionate to their financial ownership.

None of the shareholder proposals were adopted.

Active ownership in a complex technology company

Meta is an example of a company where high growth and substantial investment in artificial intelligence are closely linked to significant societal and governance risks. This applies, amongst other things, to the company’s handling of data, children’s safety, content on its platforms, human rights and shareholders’ ability to exert influence.

Through its voting and dialogue with companies, LD Pensions works to promote long-term value creation, good corporate governance and the responsible management of material ESG risks in the companies in which we invest.

Companies are placed on LD Pensions' exclusion list if they do not comply with the principles set out in our Responsible Investment Policy. As stated in the policy, LD Pensions has chosen not to invest in companies:

• where the extraction of thermal coal accounts for more than 5 per cent of turnover.
• which hold a stake of more than 25% in companies where the extraction of thermal coal accounts for more than 5% of the subsidiaries’ turnover.
• where the extraction of oil from tar sands accounts for more than 5% of turnover.
• which contributes to actions in breach of sanctions adopted by the UN or the EU and acceded to by Denmark.
• which produce weapons that contravene international conventions, such as cluster bombs, poison gases, etc.
• which contribute to corruption, for example by offering, giving or demanding bribes. Investments must not support companies where there are serious and systematic instances of corruption.
• that are involved in the production of nuclear weapons or the upgrading of existing nuclear weapons, or components that are essential to the functioning of and/or dedicated to nuclear weapons.
• that knowingly or repeatedly breach applicable legislation in the countries in which the company operates, and/or violate widely recognised international conventions and standards, and are not open to dialogue regarding remedial action.

Download LD Pensions' exclusion list from April 2026 here.

BP is an international energy company operating in the oil, gas and energy transition sectors. As an investor in BP, we in LD Pensions exercise our shareholder rights as part of our active ownership approach.

Voting at BP’s Annual General Meeting

BP held its annual general meeting on 23 April 2026. At the meeting, LD Pensions, together with other international investors, voted against a proposal to revoke previous resolutions concerning the company’s climate monitoring and reporting.

The proposal involved removing the existing framework for climate monitoring. This framework has, to date, formed the basis for dialogue between BP and its investors. Several investors felt that this would undermine transparency and the ability to monitor the company’s progress in the green transition.

Long-term commitment and active ownership

The vote follows on from LD Pensions’ previous engagement with BP’s climate strategy. In February 2025, LD Pensions, together with 48 international investors, co-signed a letter to BP’s management urging the company to maintain an ambitious climate strategy in line with the Paris Agreement.

Ditte Seidler Hansen, ESG specialist in LD Pensions, says:

"As long-term investors, we need a clear framework for monitoring companies’ climate action. Transparency and ongoing dialogue are essential if we are to assess progress and engage in informed dialogue with the companies."

BP has previously enjoyed broad support from investors for its climate strategy and for initiatives that have strengthened reporting on climate and the energy transition. With its current proposal, the company set out to repeal some of the existing resolutions in this area. This gave rise to concern amongst several investors, who felt that the change could undermine the current basis for dialogue and follow-up.

LD Pensions actively exercises its voting rights as part of its active ownership strategy. Through voting and dialogue with companies, we work to support long-term value creation and a responsible transition within the companies in which we invest.

You can read more about LD Pensions’ previous involvement with BP further down this page: LD Pensions co-signs letter to BP on climate responsibility – February 2025

From 2026, LD Pensions has entered into a partnership with Federated Hermes EOS, which now handles the dialogues with the companies in which we invest. Federated Hermes EOS is internationally recognised for its work on corporate dialogue and active ownership.

Active ownership means that, as shareholders, we work to influence the companies we invest in to adopt a more responsible and sustainable approach. This is achieved, amongst other things, through ongoing dialogue with the companies, and in some cases through exclusion if the dialogue does not lead to sufficient improvements.

Good cooperation strengthens dialogue

At the end of March, LD Pensions’ ESG team visited Federated Hermes in London to meet the team responsible for engagement and to take part in their Client Advisory Council.

In LD Pensions, they gained an insight into, amongst other things, Federated Hermes’ methods and priorities in the area of shareholder engagement. The key themes included developments in climate engagement, managing risks in conflict zones, and new approaches to measuring the outcomes of engagement work.

Ditte Seidler Hansen, senior ESG analyst in LD Pensions, explains:

- It was valuable to meet the team at Federated Hermes and gain a better understanding of their approach to shareholder engagement. This provides us with a good starting point for our collaboration and for keeping track of developments in our engagement with companies on an ongoing basis.

The photo shows Ditte Seidler Hansen, senior ESG analyst in LD Pensions, alongside Jonny Lance, Assistant Manager at Federated Hermes EOS.

Influencing through dialogue

In 2025, LD Pensions was in dialogue with 342 companies on issues relating to climate, social and governance matters. This corresponds to around one in five companies in the equity portfolio.

A total of 246 documented advances in the dialogues (so-called milestones) were recorded. Most of the milestones related to improvements in companies’ reporting and their management of climate risks.

In addition, several dialogues concerning breaches of laws and international standards, as well as serious violations, were concluded because the companies had improved their practices to such an extent that there was no longer any basis for continuing the dialogue.

It is on this basis that LD Pensions is now continuing and strengthening its work on active ownership, with Federated Hermes EOS as its new partner.

In the 2025 Annual Report, we have a separate section on responsibility. Here, we take stock of our work on responsible investment in 2025. You will find a detailed overview of all our initiatives within the area of active ownership. In the final section of the annual report, you will also find our ESG report.

In 2025, LD Pensions continued its focused work on responsible investment within a more complex and politically charged landscape. The need to strengthen Europe’s defence capabilities led to a relaxation of the exclusion criteria for European arms companies, whilst the criteria relating to human rights and oil and gas extraction were tightened. At the same time, the carbon footprint was reduced across several portfolios.

Download LD Pensions' annual report 2025 and read more about our initiatives here.

Four students from CBS, who are studying a minor in Environmental, Social and Governance (ESG), have been working on a topical issue set by LD Pensions. In an exam assignment, they analysed how active ownership can be strengthened in US companies despite regulatory and political constraints. 

The focus has been on collaborative initiatives, prioritising effective ESG measures, and on how US companies have addressed diversity, equality and inclusion (DEI) under the Trump administration.

According to Amir Hassan, an ESG specialist in LD Pensions, the collaboration has once again provided valuable insights this year:

“This year, the group has demonstrated a strong commitment to active ownership and a practical understanding of how institutional investors can navigate and realise their ambitions in the field of responsible investment at a time when there is not necessarily political support for ESG and the green transition.”

The students, too, highlight the collaboration as both educational and relevant:

“It has been a pleasure to collaborate with LD Pensions on this project. The work has deepened our understanding of the role investment funds can play in promoting responsible corporate behaviour, and has challenged us to find realistic solutions at a time when ESG is increasingly being called into question. We are very pleased to have had this opportunity and proud of the results we have achieved together.”

The photo shows the students with Amir Hassan in LD Pensions.

LD Pensions would like to thank Jenai Funk, Elena Clelia Corinti, Falk Laurenz Luserke and Valentin Frederik Nepomuk Janak for their dedicated and professional collaboration, which brings fresh perspectives to our ongoing work on active ownership and responsible investment.

Companies are placed on LD Pensions' exclusion list if they do not comply with the principles set out in our Responsible Investment Policy. As stated in the policy, LD Pensions has chosen not to invest in companies:

• where the extraction of thermal coal accounts for more than 5 per cent of turnover.
• which hold a stake of more than 25% in companies where the extraction of thermal coal accounts for more than 5% of the subsidiaries’ turnover.
• where the extraction of oil from tar sands accounts for more than 5% of turnover.
• which contributes to actions in breach of sanctions adopted by the UN or the EU and acceded to by Denmark.
• which produce weapons that contravene international conventions, such as cluster bombs, poison gases, etc.
• which contribute to corruption, for example by offering, giving or demanding bribes. Investments must not support companies where there are serious and systematic instances of corruption.
• that are involved in the production of nuclear weapons or the upgrading of existing nuclear weapons, or components that are essential to the functioning of and/or dedicated to nuclear weapons.
• that knowingly or repeatedly breach applicable legislation in the countries in which the company operates, and/or violate widely recognised international conventions and standards, and are not open to dialogue regarding remedial action.

Download LD Pensions' exclusion list from November 2025 here.

Companies are placed on LD Pensions' exclusion list if they do not comply with the principles set out in our Responsible Investment Policy. As stated in the policy, LD Pensions has chosen not to invest in companies:

• where the extraction of thermal coal accounts for more than 5 per cent of turnover.
• which hold a stake of more than 25% in companies where the extraction of thermal coal accounts for more than 5% of the subsidiaries’ turnover.
• where the extraction of oil from tar sands accounts for more than 5% of turnover.
• which contributes to actions in breach of sanctions adopted by the UN or the EU and acceded to by Denmark.
• which produce weapons that contravene international conventions, such as cluster bombs, poison gases, etc.
• which contribute to corruption, for example by offering, giving or demanding bribes. Investments must not support companies where there are serious and systematic instances of corruption.
• that are involved in the production of nuclear weapons or the upgrading of existing nuclear weapons, or components that are essential to the functioning of and/or dedicated to nuclear weapons.
• that knowingly or repeatedly breach applicable legislation in the countries in which the company operates, and/or violate widely recognised international conventions and standards, and are not open to dialogue regarding remedial action.

Download LD Pensions' exclusion list from April 2025 here.

The international financial media outlet Institutional Investor organises an annual awards ceremony at which institutional investors are recognised for, amongst other things, their efforts in the areas of ESG, transparency and long-term value creation in their investments. This year, LD Pensions was nominated for the ‘Engagement & Stewardship Champion’ award.

Institutional Investors’ reasons for the award nominations included the following:

“These companies and teams have demonstrated an unwavering commitment to bringing about real change through active ownership, transparency and long-term responsibility. Their work is helping to shape the future of responsible investment across the institutional landscape.”

ESG specialist Amir Hassan (left) and Head of Investment Kristoffer Birch receive the award.

In LD Pensions, we aim to fulfil our social responsibility through our investments, and we can do this precisely through active ownership of the companies in which we invest.

Amir Hassan, an ESG specialist in LD Pensions, says:

“It is important for us to exercise our shareholder rights. At general meetings, we have a unique opportunity to promote responsible corporate governance. This is a priority in LD Pensions, and we are therefore delighted to receive this recognition.”

Focus on active ownership in the first half of 2025

LD Pensions’ voting rights are a key part of our active ownership approach and enable us to exert direct influence over the portfolio companies in which we invest.
In the first half of 2025, LD Pensions cast votes at general meetings in 704 different companies – an increase of 102 companies compared with the same period last year. This means that votes were cast in just under 40% of the companies in LD Pensions’ portfolio.

In total, we exercised our voting rights on 10,659 items at general meetings during the first half of the year. Of these, just over 550 were shareholder proposals, on which our voting was based on our own analyses and active stance. Votes cast on the remaining agenda items at general meetings are based on ‘best-in-class’ recommendations and analyses from our Partners.

LD Pensions works to ensure the highest possible returns for its members, whilst taking risk and responsibility into account. We encourage companies to move in a positive direction in terms of responsibility, as we believe this benefits long-term returns, the companies’ shareholders, employees and society as a whole.

Read more about the award in Institutional Investor here

Together with a group of international investors, LD Pensions has recently been in dialogue with the food giant Kraft Heinz regarding the company’s agricultural practices, water consumption and reliance on natural resources.

In 2024, LD Pensions became a member of Nature Action 100 – a global investor alliance working to reduce the negative impact on nature and biodiversity in 100 carefully selected companies. The aim is to encourage these companies to set clear targets and action plans to protect and restore nature.

As part of the alliance, we recently took part in the first round of dialogue with the food giant Kraft Heinz, alongside representatives from Nordea Asset Management, APG Asset Management, Green Century Capital Management, CBIS and As You Sow.

Amir Hassan, ESG specialist in LD Pensions, says:

"When companies fail to manage biodiversity and natural capital responsibly, this poses financial and climate-related risks to both themselves and society. These are increasingly important issues for investors, and we are therefore working to ensure that companies such as Kraft Heinz act responsibly in areas and regions where the local environment is particularly vulnerable.”

During the dialogue with Kraft Heinz, the focus was, amongst other things, on how the company can improve its reporting on nature- and biodiversity-related risks in line with international standards, and how it addresses these risks across its value chain. An update was provided on the company’s targets to reduce water consumption and deforestation, as well as the need for greater transparency regarding its impact on and dependence on nature. 

“It is crucial that companies communicate openly about their impact on the natural world and the measures they are taking to minimise it – this is a clear prerequisite for us to be able to invest responsibly,” says Amir Hassan. 

Nature Action 100 has more than 230 institutional investors as members, who together manage USD 30 trillion. The investor alliance uses active ownership – that is, dialogue and pressure from investors – to bring about positive change.

In the letter, we express our concern about falling sales figures, a damaged reputation, and Tesla’s handling of human rights and corporate governance. The aim is to strengthen Tesla’s long-term value creation and ensure responsible management.

The main points of the letter are:

🔹 A requirement that Elon Musk dedicates at least 40 hours a week to Tesla to ensure his full commitment to the company.
🔹 A call for a clear succession plan for the CEO role to ensure continuity in leadership.
🔹 A call for the appointment of new independent board members who have no personal ties to Elon Musk or the current board members.

Although LD Pensions, together with the other investors who have signed the letter, owns only 0.25% of Tesla’s shares, we believe that active ownership makes a difference.

The initiative is led by SOC Investment Group, and the letter, which was sent on 28 May 2025, is signed by a group of major pension funds and institutional investors, such as the New York City Comptroller, the American Federation of Teachers and the Danish pension fund AkademikerPension.

Engaging in dialogue with companies and voting at their annual general meetings is a key element of LD Pensions’ approach to responsible investment. That is why we also exercised our voting rights at Tesla’s most recent AGM in 2024, where we voted to strengthen Tesla employees’ right to organise. We will likewise exercise our voting rights at this year’s AGM, which is expected to be held in June.

Tesla has not responded publicly to the letter.

Companies are placed on LD Pensions' exclusion list if they do not comply with the principles set out in our Responsible Investment Policy. As stated in the policy, LD Pensions has chosen not to invest in companies:

• where the extraction of thermal coal accounts for more than 5 per cent of turnover.
• which hold a stake of more than 25% in companies where the extraction of thermal coal accounts for more than 5% of the subsidiaries’ turnover.
• where the extraction of oil from tar sands accounts for more than 5% of turnover.
• which contributes to actions in breach of sanctions adopted by the UN or the EU and acceded to by Denmark.
• which produce weapons that contravene international conventions, such as cluster bombs, poison gases, etc.
• which contribute to corruption, for example by offering, giving or demanding bribes. Investments must not support companies where there are serious and systematic instances of corruption.
• that are involved in the production of nuclear weapons or the upgrading of existing nuclear weapons, or components that are essential to the functioning of and/or dedicated to nuclear weapons.
• that knowingly or repeatedly breach applicable legislation in the countries in which the company operates, and/or violate widely recognised international conventions and standards, and are not open to dialogue regarding remedial action.

Download LD Pensions' exclusion list from April 2025 here.

LD Pensions is one of the most active investors in Europe when it comes to promoting the sustainable transition through votes at general meetings. This is shown by a new analysis from the organisation Rezonanz, which examines the voting behaviour of institutional investors in the UK, Switzerland, the Netherlands, Sweden, Germany and Denmark. In their report, *Voting for the Future*, LD Pensions is ranked as the leading pension fund in Europe when it comes to votes relating to politics and lobbying.

For LD Pensions, voting at general meetings of the companies in which we invest is a key part of our active ownership. We vote globally to promote responsible corporate governance and sustainability. In 2024, we voted on 11,763 proposals across 749 different companies – an effort that underlines our focus on being active owners.

"It is important for us to exercise our shareholder rights, as general meetings provide us with a unique opportunity to promote responsible corporate governance and ensure transparency regarding companies’ lobbying activities. This is a priority in LD Pensions, and we are therefore delighted to receive this recognition,” says Amir Hassan, ESG specialist at LD Pensions.

Many of the votes cast relate to general issues such as the composition of the board, remuneration policies and auditing. In these cases, we follow fixed criteria set out in our voting policy. For more complex proposals, we carry out an individual assessment. In 2024, just over 1,300 votes required a specific analysis. This corresponded to approximately one in ten proposals on which we voted.

The Rezonanz report ranks LD Pensions at the very top in votes on policy and lobbying, whilst its ESG benchmark shows that we are also leading the way in votes on corporate governance and remuneration. Among 42 pension funds, LD Pensions ranks 14th overall for voting activity relating to ESG issues in 2024.

Find out more about Rezonanz and the report at www.rezonanz.io

Or search our database of votes cast at general meetings of listed companies.

In our recently published 2024 Annual Report, we provide an update on our work on responsible investment in 2024 in the main section entitled ‘Responsibility’. Here you will find a detailed review of all our initiatives within the area of active ownership, as well as an overview of our policy and principles. As a new feature, our climate accounts and other key ESG indicators have also been externally audited, and the ESG accounts are included in the report.

In LD Pensions, voting at general meetings of the companies in which we invest is a key part of our active ownership. In 2024, we voted on 11,763 proposals across 749 different companies – an effort that underlines our focus on being active owners.

In 2024, LD Pensions also took new steps to strengthen its work on responsible investment. Among other things, LD Pensions became a member of the Labour Rights Investor Network (LRIN), which works to improve working conditions globally, and Nature Action 100, which supports companies in taking greater account of biodiversity. At the same time, LD Pensions tightened its exclusion criteria for oil and gas companies and expanded its exclusion list to include government bonds and shares in state-owned companies in countries with serious human rights violations.

“We are working purposefully to ensure good returns for our members, whilst taking responsibility for what we invest in. In 2024, we tightened our policies and used our shareholder rights to work towards a green and just transition. We are continuing this work in 2025, although we are aware that political developments in the US are making it more challenging,” says Lars Mayland Nielsen, CEO of LD Pensions.

Download LD Pensions' annual report 2024 here.

The call is to step up efforts to protect human and labour rights within the company’s supply chain. Nike is one of the world’s largest manufacturers of sportswear, footwear and equipment, and employs over 1.1 million people across more than 500 factories in 37 countries, including Cambodia, Thailand and Vietnam.

Nike has implemented a systematic human rights risk assessment, but this is largely based on voluntary measures with limited legal protection for employees. There are therefore risks for workers as well as significant reputational risks for Nike and its investors.

In the investor letter, we urge Nike to enter into binding agreements which have proven effective in several countries in protecting employees against labour rights violations. This can also promote transparency and reduce other ESG-related risks, such as the risk of corruption. Over the past year, Nike has significantly reduced the number of staff working in the ESG area.

"We expect the companies we invest in to manage risks in their value chains. Binding agreements can provide greater assurance that workers’ rights are respected in practice and not just on paper,” says Amir Hassan, an ESG specialist in LD Pensions.

LD Pensions and the other investors who have signed the letter collectively hold Nike shares worth 2.19 trillion US dollars, equivalent to approximately 15.5 trillion Danish kroner.

We will be monitoring developments at Nike, just as we monitor developments at many other companies where we can exercise our shareholder rights. Casting our votes at general meetings of the companies in which we invest, for example, is a key part of LD Pensions’ active ownership.

In the letter, they urge BP to maintain an ambitious climate strategy with regard to the transition from fossil fuels to renewable energy.

The letter calls on BP to hold a ‘Say on Climate’ vote at its 2025 Annual General Meeting, so that investors can vote on BP’s climate strategy and the new measures the company is expected to present in late February. The initiative stems from concerns held by LD Pensions and the many other co-signatories that BP will not maintain its targets for phasing out oil and gas production by 2030. In 2020, BP committed to a 40 per cent reduction in production by 2030, but in 2022 this target was revised downwards to 25 per cent. BP has subsequently increased its investments in fossil fuel production, which is at odds with the Paris Agreement. The letter also calls on BP to better ensure that the company’s investments are in line with the Paris Agreement’s targets. 

“As long-term investors, it is our responsibility to ensure that the companies we invest in not only create value in the short term, but also have a sustainable strategy for the future. We are co-signing this letter to protect the value of our investment and to ensure that BP, at the very least, sticks to its otherwise ambitious climate strategy and, of course, involves its shareholders in decisions such as these,” says Amir Hassan, ESG specialist in LD Pensions.

The investors who have signed the letter collectively own 2.5% of the shares in BP. In 2022, 88% of shareholders voted in favour of BP’s climate strategy, including the target to reduce oil and gas production. There have been no votes on the company’s climate strategy since then. 

In February 2025, in LD Pensions, it was decided to exclude PDD Holdings Inc., the parent company behind Temu. This decision stems from our assessment that Temu is exploiting loopholes in European legislation to sell goods that do not meet European standards, whilst disregarding consumer interests. LD Pensions also considers that active ownership will not be able to influence the company to change its behaviour, as the practices in question are a central part of the company’s business model.

Companies are placed on LD Pensions' exclusion list if they do not comply with the principles set out in our Responsible Investment Policy. As stated in the policy, LD Pensions has chosen not to invest in companies:

• where the extraction of thermal coal accounts for more than 5 per cent of turnover.
• which hold a stake of more than 25% in companies where the extraction of thermal coal accounts for more than 5% of the subsidiaries’ turnover.
• where the extraction of oil from tar sands accounts for more than 5% of turnover.
• which contributes to actions in breach of sanctions adopted by the UN or the EU and acceded to by Denmark.
• which produce weapons that contravene international conventions, such as cluster bombs, poison gases, etc.
• which contribute to corruption, for example by offering, giving or demanding bribes. Investments must not support companies where there are serious and systematic instances of corruption.
• that are involved in the production of nuclear weapons or the upgrading of existing nuclear weapons, or components that are essential to the functioning of and/or dedicated to nuclear weapons.
• that knowingly or repeatedly breach applicable legislation in the countries in which the company operates, and/or violate widely recognised international conventions and standards, and are not open to dialogue regarding remedial action.

 Download LD Pensions' exclusion list from January 2025 here.

Companies are placed on LD Pensions' exclusion list if they do not comply with the principles set out in our Responsible Investment Policy. As stated in the policy, LD Pensions has chosen not to invest in companies:

• where the extraction of thermal coal accounts for more than 5 per cent of turnover.
• which hold a stake of more than 25% in companies where the extraction of thermal coal accounts for more than 5% of the subsidiaries’ turnover.
• where the extraction of oil from tar sands accounts for more than 5% of turnover.
• which contributes to actions in breach of sanctions adopted by the UN or the EU and acceded to by Denmark.
• which produce weapons that contravene international conventions, such as cluster bombs, poison gases, etc.
• which contribute to corruption, for example by offering, giving or demanding bribes. Investments must not support companies where there are serious and systematic instances of corruption.
• that are involved in the production of nuclear weapons or the upgrading of existing nuclear weapons, or components that are essential to the functioning of and/or dedicated to nuclear weapons.
• that knowingly or repeatedly breach applicable legislation in the countries in which the company operates, and/or violate widely recognised international conventions and standards, and are not open to dialogue regarding remedial action.

 Download LD Pensions' exclusion list from January 2025 here.

LD Pensions' exclusion list has once again been expanded, as we have chosen to exclude countries that pose significant risks of human rights violations. This also entails the exclusion of securities issued by countries which, according to our partners, are found to be committing particularly serious human rights violations. We have also expanded our exclusion criteria to include oil and gas companies which we assess as deliberately undermining the objectives of the Paris Agreement and as not being sufficiently ambitious in terms of making improvements.

Companies are placed on LD Pensions' exclusion list if they do not comply with the principles set out in our Responsible Investment Policy. As stated in the policy, LD Pensions has chosen not to invest in companies:

• where the extraction of thermal coal accounts for more than 5 per cent of turnover.
• which hold a stake of more than 25% in companies where the extraction of thermal coal accounts for more than 5% of the subsidiaries’ turnover.
• where the extraction of oil from tar sands accounts for more than 5% of turnover.
• which contributes to actions in breach of sanctions adopted by the UN or the EU and acceded to by Denmark.
• which produce weapons that contravene international conventions, such as cluster bombs, poison gases, etc.
• which contribute to corruption, for example by offering, giving or demanding bribes. Investments must not support companies where there are serious and systematic instances of corruption.
• that are involved in the production of nuclear weapons or the upgrading of existing nuclear weapons, or components that are essential to the functioning of and/or dedicated to nuclear weapons.
• that knowingly or repeatedly breach applicable legislation in the countries in which the company operates, and/or violate widely recognised international conventions and standards, and are not open to dialogue regarding remedial action.

 Download LD Pensions' exclusion list from December 2024 here.

A group of students taking a minor in ESG have written an assignment at our request, in which they have investigated how institutional investors such as LD Pensions can contribute to reducing greenhouse gas emissions and achieving the Paris Agreement’s targets. They chose to focus on transition funds as a key tool.

"The students demonstrated a keen understanding of how institutional investors can make a difference to the green transition. Their concrete proposals have given us new perspectives, and it has been a pleasure to discuss them with the students," says Amir Hassan, ESG analyst in LD Pensions.

For the students from CBS, the collaboration was also a valuable experience:

"It has been exciting and very educational to work with LD Pensions. Applying theory to a real-life case made the process both realistic and inspiring," say the students.

We would like to thank Emma Daniele, Benjamin Danquardt, Laszlo Junker and Ester Belladelli for their commitment, ideas and conclusions, which we believe hold great potential for application in our ongoing work on responsible investment🌱💰

The photo shows the students from CBS together with Amir Hassan, ESG analyst at LD Pensions.

Companies are placed on LD Pensions' exclusion list if they do not comply with the principles set out in our Responsible Investment Policy. As stated in the policy, LD Pensions has chosen not to invest in companies:

• where the extraction of thermal coal accounts for more than 5 per cent of turnover.
• which hold a stake of more than 25% in companies where the extraction of thermal coal accounts for more than 5% of the subsidiaries’ turnover.
• where the extraction of oil from tar sands accounts for more than 5% of turnover.
• which contributes to actions in breach of sanctions adopted by the UN or the EU and acceded to by Denmark.
• which produce weapons in breach of international conventions, such as cluster bombs, poison gases, etc.
• which contribute to corruption, for example by offering, giving or demanding bribes. Investments must not
• support companies where there are serious and systematic instances of corruption.
• that are involved in the production of nuclear weapons or the upgrading of existing nuclear weapons, or components that are essential to the functioning of and/or dedicated to nuclear weapons.
• which knowingly or repeatedly breach applicable legislation in the countries where the company operates, and/or violate widely recognised international conventions and standards, and are not open to dialogue regarding remedial action. 

Download LD Pensions' exclusion list from June 2024 here.

LD Pensions is taking part in the conference to keep abreast of the latest trends in responsible investment. Our aim is to achieve the highest possible Return, whilst taking risk into account, and at the same time to invest responsibly. 

The conference is being held in Toronto, where Amir Hassan is listening to presentations from experts and meeting with representatives from organisations including the Labour Rights Investor Network and Nature Action 100 🤝. These are two global investor alliances in which LD Pensions participates in order to influence companies to create better conditions for workers and reduce pressure on the natural world. 

"It is instructive to exchange views with other institutional investors on many of the same challenges we face when working on climate, labour rights and shifting geopolitical conditions. The conference provides an opportunity to share ideas and experiences on how we can influence companies to act more sustainably,” says Amir Hassan.

LD Pensions' exclusion list has been expanded to include unlisted companies. Following the update in June 2024, the exclusion list now comprises a total of 357 companies. This represents an increase of 99 compared with the list from October 2023. The increase is mainly due to the inclusion of unlisted companies on the list. That is to say, companies that have issued listed corporate bonds but not listed shares. Previously, the list covered only listed companies, i.e. companies that have chosen to list their shares on a public stock exchange.

Companies are placed on LD Pensions' exclusion list if they do not comply with the principles set out in our Responsible Investment Policy. As stated in the policy, LD Pensions has chosen not to invest in companies:

• where the extraction of thermal coal accounts for more than 5 per cent of turnover.
• which hold a stake of more than 25% in companies where the extraction of thermal coal accounts for more than 5% of the subsidiaries’ turnover.
• where the extraction of oil from tar sands accounts for more than 5% of turnover.
• which contributes to actions in breach of sanctions adopted by the UN or the EU and acceded to by Denmark.
• which produce weapons in breach of international conventions, such as cluster bombs, poison gases, etc.
• which contribute to corruption, for example by offering, giving or demanding bribes. Investments must not
• support companies where there are serious and systematic instances of corruption.
• that are involved in the production of nuclear weapons or the upgrading of existing nuclear weapons, or components that are essential to the functioning of and/or dedicated to nuclear weapons.
• which knowingly or repeatedly violate applicable legislation in the countries where the company operates, and/or breach widely recognised international conventions and standards, and are not open to dialogue regarding remedial action. 

Download LD Pensions' exclusion list from June 2024 here.

At this year’s annual general meetings, LD Pensions has once again voted in favour of promoting initiatives that support a sustainable transition. We have voted both to improve companies’ climate and environmental performance and to strengthen social conditions, with a particular focus on workers.

The annual peak season for annual general meetings is drawing to a close. This is a period when we are particularly busy exercising our active ownership. At these meetings, we have a direct opportunity to influence the companies in which we invest. Once again this year, in LD Pensions we have supported many proposals aimed at promoting climate and environmental issues and ensuring better social standards. At the same time, we have voted against initiatives which we have assessed as being too unambitious. 

Amir Hassan, an ESG analyst in LD Pensions, has in recent months been making daily decisions on how LD Pensions should vote at the annual general meetings of both Danish and international companies. “We have a strong interest in using our voting rights as shareholders to steer companies towards greater sustainability. We do this to increase companies’ resilience and generate good returns in both the short and long term, but we also do it to put pressure on companies that may not themselves take the initiative to transition towards sustainability,” says Amir Hassan.

Focus on better rights for workers

Once again this year, we have made it a priority to vote in favour of proposals aimed at ensuring better conditions for employees at the companies in which we invest. We have done so, for example, at the annual general meeting of one of the US’s largest banks, Wells Fargo, and at one of the leading US food producers, Tyson Foods.

At Wells Fargo, we have voted in favour of a proposal calling for an independent assessment of the company’s compliance with freedom of association and collective bargaining. The assessment is to evaluate management’s interference when employees attempt to form or join trade unions, and to recommend possible improvements.

At Tyson Foods, we have supported a proposal to carry out an independent assessment of the company’s policies and practices regarding the prevention of illegal child labour throughout its value chain. The assessment is to be published on the company’s website and must, amongst other things, include recommendations for action and regular reporting on progress. 

Protection of nature and biodiversity

At the Tyson Foods Annual General Meeting, we also voted in favour of a proposal that the company should work towards achieving verified deforestation-free supply chains by 2025, and that Tyson Foods begins to assess and report on its dependence on and impact on biodiversity in line with the recommendations of the Task Force on Nature-related Financial Disclosures (TNFD).

“Nature and biodiversity form the basis for around half of the global economy and, consequently, for many of the companies in which LD Pensions has invested. By protecting nature and biodiversity, companies can reduce risks and promote a sustainable future – both for themselves and for society. We are trying to push for this by exercising our voting rights at general meetings,” says Amir Hassan. 

LD Pensions votes at the annual general meetings of all Danish listed companies in which we hold a shareholding. We also vote at the annual general meetings of many foreign listed companies. 

Unfortunately, the proposals we supported at Wells Fargo and Tyson Foods, respectively, were not adopted, as there was insufficient support.

LD Pensions exercised its voting rights at Tesla’s Annual General Meeting on 13 June 2024. At the meeting, we supported several shareholder proposals. Two of the proposals were passed and will help to improve Tesla’s corporate governance. 

Annual board elections promote responsibility 

One of the proposals adopted ensures that Tesla’s board members will in future be elected annually rather than every three years. LD Pensions voted in favour of the proposal, as we believe that holding the board accountable to shareholders every year can promote good governance. This may increase the board’s responsiveness and commitment, as well as making it easier for shareholders to change the board’s composition as required. 

A simple majority ensures greater fairness 

The second proposal adopted amends Tesla’s articles of association so that only a simple majority is required for all types of votes within the company. Amir Hassan, an ESG analyst in LD Pensions, explains: “It has previously been possible to require a qualified majority. This can give a minority the power to block the will of the majority and prevent necessary reforms. By supporting this proposal, we are ensuring that democracy within the company functions more fairly.” 

We will continue to exert our influence 

In addition to these proposals, LD Pensions also voted in favour of other shareholder proposals at the annual general meeting, which unfortunately were not passed. We also voted against Tesla’s proposal for a substantial remuneration package for Chief Executive Elon Musk, but must note that the proposal was approved. 

LD Pensions votes at the annual general meetings of all Danish listed companies in which we hold a shareholding. We also vote at the annual general meetings of many foreign listed companies. 

"By voting at general meetings and engaging in dialogue with companies, we as investors can influence corporate practices and work towards a more responsible and sustainable future," says Amir Hassan. “We are continuing our efforts as active owners and exercising our influence wherever we can.” 

You can read more about our approach and our work as active owners in our 2023 Corporate Social Responsibility Report. 

A significant part of our active ownership involves casting our votes at general meetings of the Danish companies in which we invest. 

In March 2024, together with AkademikerPension and LD Pensions, we tabled shareholder proposals at the annual general meetings of DSV and Maersk to ensure greater transparency regarding the companies’ efforts to ensure respect for human rights within their own operations and supply chains.  

In LD Pensions, we helped to table the proposals because, as shareholders, we want to be assured that the companies we invest in have sound risk management – including with regard to sustainability risks. We believe that sound risk management, including risks relating to human rights, benefits the company and its long-term value. 

For DSV, effective management of human rights-related risks has become particularly relevant because the company has entered into a partnership with the Saudi firm NEOM to build a new metropolis in Saudi Arabia. Maersk operates globally and in an industry with significant risks relating to human and labour rights, and AkademikerPension and LD Pensions also tabled a similar proposal in 2023.  

According to their websites, both companies have committed to respecting human rights and carrying out due diligence in line with the UN Guiding Principles on Business and Human Rights (UNGPs). Together with AkademikerPension and LD Pensions, we specifically proposed that, in line with these principles, the companies should document and publicly communicate on:

• how the company identifies and assesses risks relating to human rights, including the process for identifying adverse impacts associated with the company’s operations, supply chain and business relationships.
• the company’s efforts to prevent and mitigate the identified material risks and impacts relating to human rights and labour rights.
• how the company monitors the effectiveness of measures to prevent and mitigate the identified risks, and how it ensures that these measures are suitable for preventing future adverse impacts.
• how the company uses stakeholder engagement to inform its human rights due diligence processes.
• how the company carries out enhanced human rights due diligence in relation to projects and contracts where there is a high risk of human rights abuses. 

The proposal was passed at the DSV general meeting.

In 2023, LD Pensions exercised its voting rights as a shareholder on 12,650 agenda items at general meetings to encourage companies to make sustainable choices. This represents a 50 per cent increase compared with the previous year. In LD Pensions, they also engaged in dialogue with 434 companies on becoming more sustainable and set a target to reduce the climate footprint of its investments.

We have significantly increased our use of the right to vote

In its recently published “Corporate Social Responsibility Report 2023”, LD Pensions takes stock of its work on responsible investment. Among other things, the report shows that in 2023, LD Pensions exercised its voting rights as a shareholder 12,650 times at general meetings of 755 companies from all corners of the globe. This was approximately 4,300 times more than the previous year and just under 10,800 times more than in 2021.

“Exercising our voting rights at general meetings is an important part of being active shareholders and encouraging companies to transform their practices. We have made voting a priority because we believe that, in this way, we can encourage more companies to make sustainable choices that benefit long-term returns, employees and the transition of society as a whole”, says Lars Mayland Nielsen, Director of LD Pensions.

We engage in dialogue with businesses

As well as voting at general meetings, we engage in dialogue with companies to encourage them to make changes. In total, in 2023, LD Pensions engaged in dialogue with 434 companies via our ESG partner to improve climate and environmental, social or governance issues. The dialogue with companies focused, amongst other things, on rectifying situations where they had breached international norms and standards, and on selected ESG themes. One theme for dialogue in 2023 was to limit the loss of nature and biodiversity and to encourage more companies to report on their impact, risks and opportunities in this regard.

Climate targets for 2030 have been set

In 2023, LD Pensions measured the carbon footprint of the majority of the companies in which we invest. A target was set to work towards reducing the carbon footprint of our investments in listed shares and corporate bonds by 40–60 per cent by 2030, compared with our 2019 figures.

“It will take a major effort from society as a whole if we are to achieve our climate targets. New technologies must be developed and funded, businesses and consumers must be ready to adapt, and ambitious policy initiatives must be adopted and implemented globally. We will contribute in whatever way we can – namely by financing the green transition, engaging in dialogue with companies and voting in favour of climate-friendly proposals at general meetings,” says Lars Mayland Nielsen.

You can read more about LD Pensions’ role as an active owner and our work on responsible investment in the 2023 Corporate Social Responsibility Report

View all LD Pensions’ reports here

LD Pensions has received ideas from students at CBS on how to address two current challenges in the field of responsible investment. The students have submitted their ideas as part of two exam assignments. The conclusions will be used in LD Pensions’ work to ensure responsibility in investment practices.

In autumn 2023, LD Pensions presented students at CBS with current challenges relating to our work on responsible investment. Two teams on the Minor in Environmental, Social and Governance (ESG) programme took up the challenge and, before Christmas, submitted their responses to the issues raised in two exam assignments, which have just been assessed.

Amir Hassan, an ESG analyst in LD Pensions who has mentored the two groups from CBS, sees the process as an asset for LD Pensions.

“Gaining students’ perspectives on the dilemmas and challenges we face in our day-to-day work has proved to be of great value. It actually helps us shed even more light on current issues. It brings new ideas to the table and helps keep us up to date in our work on responsible investment,” says Amir Hassan.

A tool for assessing green board competencies

One of LD Pensions’ questions was how institutional investors can promote ESG expertise on the boards of listed companies, so that they are better equipped to drive a green transition within the company. To this end, the students developed a tool that can map a board’s competencies in the area of green transition. The group demonstrated the tool using selected Danish banks and recommended that LD Pensions use it to evaluate potential board members and/or, together with other investors, to put pressure on boards to improve their understanding of ESG issues.

The photo shows the group that chose to write about ESG competencies on boards of directors during a visit to LD Pensions. From left: Anders Ulrich Nilsson (portfolio manager in LD Pensions), Amir Hassan (ESG analyst in LD Pensions), Simon Holm Larsen, Carl Bjerregaard, Rikke Damgaard and Victoria Mærsk Mc-Kinney Holdt Olufsen.

"With guidance from LD Pensions, we wrote an exam paper in which LD Pensions’ knowledge and insight into ESG and business processes were a key element. For us, the collaboration was an educational experience, where theory from lectures could be translated into the development of a tangible product in practice,” says Carl Bjerregaard from the relevant group.

Mapping the external communications of institutional investors

The second question concerned how institutional investors define and interpret sustainable investments, and how they approach investments in nuclear power, natural gas and arms manufacturers. The students were asked to take a broad range of institutional investors in Denmark as their starting point and draw up recommendations for LD Pensions.

In this project, the students analysed the external communications of selected Danish institutional investors and made recommendations on how LD Pensions should navigate the complex landscape of sustainable investment.

The photo shows the group who chose to write about sustainable investment during their visit to LD Pensions. From left: Kajsa Risbjerg, Victoria Nielsen, Line Kriby Prægel, Emma Fellenius, Amir Hassan (ESG analyst in LD Pensions) and Kristoffer Fabricius Birch (CIO in LD Pensions).

“It was interesting to learn about LD Pensions' ESG strategy. We had some good discussions and received valuable input on how LD Pensions navigates the ESG landscape to ensure long-term returns and reduce risks for its members. We hope that our project will be of benefit to LD Pensions,” said Kajsa Risbjerg from the second group following the programme.

In LD Pensions, the work will continue to build on the ideas and input received as part of its ongoing work to develop strategy and policies in the ESG area.

In January 2024, LD Pensions joined the Labour Rights Investor Network, a new forum for investors from around the world who wish to promote the right to freedom of association and collective bargaining in the companies in which they invest.

Amir Hassan (pictured), an ESG analyst in LD Pensions, recently attended his first meeting of the Labour Rights Investor Network and is enthusiastic about the new forum:

"The first meeting with the Labour Rights Investor Network was fruitful. The forum examined specific cases of labour rights violations in great detail. It provided useful insight into how far we have come in the process of getting companies to change course to ensure collective bargaining and freedom of association."

As part of the Labour Rights Investor Network, we are committed to integrating labour rights considerations into our investments in collaboration with other investors. This is in line with our strategic objective of helping to advance the UN Sustainable Development Goals, with a particular focus on Goal 8, which concerns the protection of labour rights.

“The network can help to improve and focus our efforts as active owners to achieve better working conditions. I look forward to taking part in the network’s upcoming initiatives and helping to strengthen workers’ rights in companies alongside other like-minded investors,” says Amir Hassan.

The Labour Rights Investor Network was established in October 2023 to create a global forum where members can share publicly available information from other investors and trade unions on issues relating to freedom of association and collective bargaining in companies and sectors. The network makes it easier for global investors to gain an understanding of legislation, workers’ rights and specific conditions in companies and countries in which they invest. The network also enables the exchange of experiences in working towards better conditions for workers through active ownership.

In addition to UN Sustainable Development Goal 8, we in LD Pensions have also chosen to focus on Sustainable Development Goals 13, 14 and 15, all of which aim to improve climate and environmental conditions.

In the final quarter of 2023, we excluded 258 companies, which is an increase of 16 companies since our last exclusion list. This increase is primarily due to more companies exceeding our limit on the amount of thermal coal they are permitted to extract. We exclude companies where thermal coal extraction accounts for more than 5% of turnover.

LD Pensions' exclusion list also includes the following companies:

• if oil extraction from tar sands accounts for more than 5 per cent of turnover.
• which holds a stake of more than 25% in companies that extract coal.
• which produce weapons that contravene the Convention.
• which are involved in the production of nuclear weapons or the upgrading of existing nuclear weapons, and which may therefore be linked to violations of the disarmament provisions of the “Non-Proliferation Treaty” (Non-Proliferation Treaty) and violations against civilian populations under the Geneva Conventions. In LD Pensions, companies that produce key components of nuclear weapons, such as warheads, missiles and explosives, are excluded, whilst investments may still be made in companies that produce components that can be used for both civilian purposes and nuclear weapons.
• which deliberately and repeatedly violate widely recognised international conventions and norms and fail to respond to constructive dialogue (disengagements).

Download the latest exclusion list from LD Pensions here.

We have exercised our influence in many more companies through ongoing dialogue and by casting votes at general meetings. This helps to steer our investments in a more responsible and sustainable direction. Amir Hassan is leading this effort.

Since joining the company, Amir Hassan, LD Pensions’ new ESG analyst, has given a significant boost to LD Pensions’ work on responsible investment and sustainability. For example, he has assessed oil companies’ transition plans as part of our active ownership strategy and ensured a better data foundation for LD Pensions’ climate work going forward. In addition, he monitors potentially problematic environmental, social and governance (ESG) issues within the portfolios and contributes to the development of LD Pensions' policy on responsible investment practices.

“It’s been exciting to join an organisation that places ESG high on the agenda. I’d say I’ve been kept very busy since I started. As the role was newly created and the ambitions were high, I’ve had to prioritise my tasks. As well as the more strategic considerations, my work in the area of active ownership has taken up a lot of my time,” says Amir Hassan.

What is active ownership?

Active ownership means that, as shareholders, we seek to influence the companies we invest in to adopt a more responsible and sustainable approach. We do this by casting our votes at general meetings and through ongoing dialogue with the companies, also known as ‘engagements’. In some cases, it is necessary to exclude companies entirely.

Amir Hassan says:

"We have chosen to invest significant resources in our active ownership, as it is a crucial part of our overall ESG strategy. Working with active ownership is very rewarding, as you can actually influence companies and see results in both the short and long term.”

Voting at general meetings has increased many times over

This spring is peak season for annual general meetings. In 2022, LD Pensions voted at 612 annual general meetings, which is a significant increase compared with 2021; see the figure. In 2023, we expect to vote at more than 900 general meetings.

“We have a tradition of voting at the annual general meetings of all the Danish companies in which we invest. It is particularly amongst international companies that we have stepped up our efforts. There are a number of companies where we wish to influence management to adopt a more responsible and sustainable approach. Here, we can certainly see that we have been allocated more resources, enabling us to justify and elaborate on our positions far more effectively,” says Amir Hassan.

In 2022, we considered a total of 8,347 resolution items at the annual general meetings and voted against management’s recommendations in 35 per cent of cases. The reason we so often vote against management is that we focus on companies with low sustainability performance and companies where management views the company’s activities differently from how we do. For example, we focus on companies’ plans for reducing greenhouse gas emissions and examine whether realistic targets for reducing emissions have been set, and whether there is open and credible reporting on their climate impact.

“We often see shareholders putting forward their own proposals for companies’ climate plans. This helps to press companies in a more sustainable direction. However, the best results are typically achieved when companies themselves take responsibility for launching initiatives that reduce their carbon footprint,” explains Amir Hassan.

Seeking to exert influence through dialogue

Dialogue is one of the most important tools for influencing companies. In 2022, LD Pensions undertook a total of 479 ‘engagements’ in collaboration with the international ESG consultancy Sustainalytics, with the aim of improving areas of concern relating to ESG. This represented a significant increase compared with the previous year. For example, efforts are being made to ensure that a major US retail company provides its employees with better opportunities to organise themselves into trade unions. LD Pensions also participated in so-called proactive ‘engagements’ on issues such as human rights and responsible taxation. Through these efforts, a deterioration in conditions at several hundred companies worldwide is being prevented.

To maximise our influence, we take part in a coordinated approach towards relevant companies on behalf of many institutional investors. LD Pensions’ equity fund managers also engage with companies, for example by demanding transparency and reporting from them.

In some cases, exclusion is necessary

In 2022, we updated our exclusion policy. This led to a significant increase in the number of companies on our exclusion list. This is primarily due to a decision to take a tougher stance towards companies that extract thermal coal and oil from tar sands. We are aware that exclusion means we no longer have the opportunity to influence these companies directly, but at the same time it is important to set clear boundaries. The exclusion policy also covers companies that produce weapons in breach of international conventions, such as nuclear weapons, cluster bombs, poison gases, etc. Furthermore, we exclude companies that are unwilling to engage in constructive dialogue, or that have repeatedly breached international conventions and standards.

Continued strengthening of active ownership

It is very satisfying to see the results of such a significant strengthening of our active ownership.

“LD Pensions was already built on a solid foundation when it came to ESG initiatives. Step by step, we are simply adding more areas of focus, thereby strengthening our influence as a shareholder. It is very meaningful work to be part of,” explains Amir Hassan.

Our active ownership creates value for the company’s employees and society as a whole, and it is LD Pensions’ view that this ultimately also helps to generate higher returns on investment. We will therefore continue to strengthen this area in 2023 and beyond.

Read more about LD Pensions' active ownership in the 2022 annual report.

In the first quarter of 2023, we had 242 companies from our equity portfolios and corporate bonds on our exclusion list. We screen our equity portfolios and corporate bonds every quarter for breaches of our responsible investment policy.

LD Pensions' exclusion list includes companies,

• if oil extraction from tar sands accounts for more than 5 per cent of turnover
• if the extraction of thermal coal accounts for more than 5% of turnover
• which holds a stake of more than 25% in companies that extract coal
• which produce weapons that contravene the Convention
• which are involved in the production of nuclear weapons or the upgrading of existing nuclear weapons, and which may therefore be linked to a breach of the disarmament provisions of the ‘Non-Proliferation Treaty’ (Non-Proliferation Treaty) and violations against civilian populations under the Geneva Conventions. In LD Pensions, companies that produce key components of nuclear weapons, such as warheads, missiles and explosives, are excluded, whilst investments may still be made in companies that produce components that can be used for both civilian purposes and nuclear weapons.
• which deliberately and repeatedly violate widely recognised international conventions and norms and fail to respond to constructive dialogue (disengagements)

Download the latest exclusion list from LD Pensions here.

Maersk held its annual general meeting on 28 March 2023. At the meeting, LD Pensions, together with ATP and AkademikerPension, chose to vote against the new remuneration policy adopted by the board of directors.

The proposal includes changing the pay structure so that the amount of variable pay can be significantly higher than before.

Despite the fact that we in LD Pensions voted against the new remuneration policy, the proposal was approved.

On the same occasion, we also voted against the approval of last year’s remuneration report, as a lack of transparency makes it difficult to understand what factors lead to the payouts for variable remuneration.

In LD Pensions, the company is a co-signatory to AkademikerPension’s shareholder proposal regarding the disclosure of due diligence and risks relating to human rights.

The shareholder proposal will be tabled at the annual general meetings of Carlsberg, Maersk and FLSmidth in March 2023.

According to the shareholder proposal, companies’ boards of directors must communicate publicly on:

• the company’s efforts to respect human rights and labour rights in accordance with the UN Guiding Principles on Business and Human Rights (UNGPs)
• the human rights-related financial risks that the company has identified, and how the company is seeking to address them.

The information published must – with the exception of confidential information – be updated and published at least once a year, within the limits of what is reasonable in terms of cost. Information must be published prior to the notice convening the annual general meeting, for the first time in 2024, and may be included in the current reporting package.

The proposal was passed at FLSmith’s annual general meeting.