Denmark’s AkademikerPension, together with LD Fonde, has submitted a shareholder proposal asking Danish logistics company, DSV, to expand its reporting on how it identifies and manages human rights risks.

The pension fund said one of the reasons for the shareholder proposal is the company's large-scale collaboration with the Saudi company NEOM to build a new giant city in Saudi Arabia. AkademikerPension has accused DSV of having a “blindspot” when it comes to outside concerns about this project.

DSV has already committed to respect human rights and perform due diligence in line with the UN Guiding Principles on Business and Human Rights, but AkademikerPension said, as a shareholder of DSV, that it still lacks adequate reporting and documentation that the company is adequately managing these risks.

"It's no secret that we, with our accountability glasses on, are very concerned about this cooperation. It is well known that Saudi Arabia has a strained relationship with human rights and the Paris Agreement. At the same time, DSV has so far not prioritised documenting its processes in the area of human rights, and it can only be soberly stated that this has become more important now," AkademikerPension investment director, Anders Schelde, said.

As part of the proposal, AkademikerPension wants DSV to document how it works with risks of human rights violations. This also applies to projects with a high risk of human rights violations as it believes that such projects entail a stricter obligation. The pension fund argues that DSV's joint venture project with Saudi Arabia falls into this category.

Following the submission of AkademikerPension’s shareholder proposal, DSV's Board of Directors has announced that it will give its support to it at the annual general meeting on 14 March.

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