Good news for StopEACOP: Denmark’s biggest pension fund, PFA face pressure to divest from TotalEnergies
In a startling revelation, Denmark's largest pension fund, PFA, is at the center of a climate action controversy, despite its prominent role in Climate Action 100+. PFA has no qualms about investing in the fossil fuel industry, particularly TotalEnergies when big players in the Danish pension funds are divesting.
It’s not lost on us and many Danish citizens that PFA, with approximately $90 billion in assets and one of Europe’s biggest pension funds, has positioned itself as a leader in sustainable investments while investing in companies that are continuing with fossil fuel expansion projects like the East African Crude Oil Pipeline (EACOP).
PFA is reported to have stubbornly clung to a $218 million investment in TotalEnergies when the environment around them in Denmark is quickly shifting towards sustainable investments. This decision becomes even more questionable as other Danish pension funds abandon their stakes in oil majors, recognizing the incompatibility of fossil fuel expansion with climate goals.
Denmark's largest bank, Danske Bank, and its pension fund, Danica Pension, have already initiated the process of divesting from TotalEnergies. Their recently adopted fossil fuel policy sets strict exclusion criteria for upstream oil and gas expansion. This leaves PFA as the lone major Danish investor still betting on TotalEnergies' future.
The cognitive dissonance in PFA's strategy is evident. At TotalEnergies' recent AGM, PFA used its 60-second speaking slot to praise the company's "leadership in the green transition" while merely inquiring about methane spill reduction. This approach conveniently ignores TotalEnergies' massive expansion plans and controversial projects like EACOP.
The tide may be turning, however. In response to this news, Denmark's Green Left party (Socialistisk Folkeparti, SF) has proposed a groundbreaking ban on investments in fossil fuel companies engaged in upstream expansion. If adopted, this would be the first legislation of its kind, potentially forcing PFA to reconsider its investment strategy.
As climate activists and concerned citizens, we must question the effectiveness of "active ownership" strategies when they fail to address the core issue of fossil fuel expansion. PFA's continued investment in TotalEnergies undermines global efforts to combat climate change and directly contradicts the goals of initiatives like Climate Action 100+.
It's time for PFA to align its actions with its stated commitments. As part of the #StopEACOP campaign, we call on PFA to join its peers in divesting from companies that prioritize profits over people, the environment, and the climate.
