LOADING

Type to search

Danish Pension Fund AkademikerPension Wraps Up $520 Million Divestment in Fossil Fuel Stocks

Danish Pension Fund AkademikerPension Wraps Up $520 Million Divestment in Fossil Fuel Stocks

Danish Pension Fund AkademikerPension

Danish pension fund AkademikerPension, which oversees $20 billion in client assets, has completed a multiyear divestment program to purge its portfolio of oil and gas stocks.

AkademikerPension has announced that it had sold its stake in Eni, the final oil and gas company in its portfolio. This marks the completion of a divestment program that began in 2019 and has resulted in the sale of all of AkademikerPension’s fossil fuel holdings, worth a combined 3.7 billion kroner ($520 million).

AkademikerPension’s decision to divest from oil and gas is based on its belief that these companies are not serious about aligning their business with the goal of limiting global warming to 1.5 degrees Celsius. The fund has also stated that it is concerned about the environmental and social impacts of the oil and gas industry.

A spokesperson for Eni said that the company is committed to achieving net zero emissions by 2050. However, AkademikerPension’s chief investment officer, Anders Schelde, said that the fund had tried to work with oil and gas companies to change their climate strategies, but that these companies had refused to do so.

Schelde also said that the divestments have had a neutral to slightly positive effect on returns, indicating that investors can divest from fossil fuels without sacrificing financial performance.

Related Article: Hydro Rein and GreenGo Energy To Develop Two New Solar Projects in Denmark

The significance of AkademikerPension’s divestment

AkademikerPension’s divestment from oil and gas is a significant development, as it is one of the largest pension funds in Denmark. This move is likely to inspire other pension funds and institutional investors to follow suit.

The divestment movement is gaining momentum around the world, as more and more investors recognize the risks posed by climate change. In 2022, a record $1.1 trillion was divested from fossil fuels, according to the Global Fossil Fuel Divestment Investment Tracker.

The future of fossil fuels

The future of fossil fuels is uncertain. As the world transitions to a clean energy economy, demand for oil and gas is expected to decline. This could lead to stranded assets, as oil and gas companies become less and less profitable.

Investors who remain invested in fossil fuels are taking on significant risk. As the world transitions to a clean energy economy, the value of fossil fuel assets could plummet.

AkademikerPension’s divestment from oil and gas is a sign of the growing recognition among investors of the risks posed by climate change. As the world transitions to a clean energy economy, investors who remain invested in fossil fuels are taking on significant risk.

Topics

Related Articles

LOADING

Type to search

Blog

GRI, CDP Align Climate and Energy Reporting to Strengthen Global Disclosure Consistency
Microsoft Expands Carbon Removal Partnership with UNDO, Backed by Inlandsis Fund
PRI Appoints Cambria Allen-Ratzlaff Interim CEO
Anthesis Appoints Michael Salvatico to Lead Climate and Nature Strategy in Asia Pacific
Tokyo to Issue World’s First Certified Climate Resilience Bond
IATA Launches Global Integrated Sustainability Program for Airlines
Mars Launches Climate School to Embed Net Zero Literacy Across Global Workforce
EcoVadis Launches Worker Voice Connect for Global Supply Chains
UK Clean Energy Jobs Plan to Create 400,000 New Roles by 2030
Global Companies Launch Carbon Measures to Create Standard Framework for Carbon Accounting
Federal Reserve, FDIC Withdraw Climate Risk Rules for Large Banks
Huawei and GoldenPeaks Capital Partner on 500MWh Grid-Forming Battery Projects in Europe
JPMorgan Chase, Carbon Direct Launch Framework to Link Biodiversity with Carbon Markets
Malaysia’s Rubber Industry Moves to Implement Net Zero Transition Framework
Federal Reserve, FDIC Withdraw Climate Risk Rules for Large Banks
EQT's Arcwood Environmental Appoints Carol Roos as Chief Communications and Sustainability Officer
Indonesia Resumes International Carbon Trade Under New Transparency Decree
Malaysian Pension Fund KWAP Launches $475M Climate Investment Fund to Accelerate Low-Carbon Transition
SHS Group Secures $1.8B Financing for Power4Steel, Advancing Germany’s Green Steel Transition
Greenly Launches AI-Powered EcoPilot for Corporate Carbon Accounting, Scope 3 Decarbonization
","session_id":"ep-sess-1761849425-xqvWfwKw","page_url":"https:\/\/esgnews.com\/danish-pension-fund-akademikerpension-wraps-up-520-million-divestment-in-fossil-fuel-stocks\/","post_id":"22897","tracking_enabled":"1","original_referrer":"","has_embedded_content":""}; /* ]]> */