Danish pension fund P+ to ditch fossil fuel companies with expansion plans

Danish pension fund P+, which manages some $23 billion in assets, says it will no longer invest in fossil fuel companies that aim to expand their output.

Why it matters: To prevent catastrophic climate change, scientists warn that the world cannot afford new investments in fossil fuel assets. And modelling by the International Energy Agency shows that new projects are not needed in any case as the world shifts to cleaner energy sources.

The latest: Katrine Ehnhuus, a board member of P+, said in a post on LinkedIn that “an overwhelming majority” of the fund’s directors had voted in favour of the new investment directive.

“Fossil expansion is not compatible with the Paris Agreement’s goal of keeping temperature rises below 1.5°C,” Ehnhuus said.

In March, Dutch pension fund ABP, which is Europe’s largest, said it would divest from companies “where climate or biodiversity damage is inherently linked to their business activities, with no realistic prospect of improvement.”