Denmark’s Danica has removed 30 companies from its restricted investment list, after adjusting its investment framework to enable it to invest in more defence companies.

The adjustment is expected to be fully implemented by May 2025, and all investments will be within the framework of Danica's policy for responsible investment.

Through this, the pension provider can invest in companies that supply important components for the rearmament of European defence and security through different technologies, products, and solutions that help the rearmament of European defence.

The adjustment will provide Danica with more opportunity to go broader into the defence industry and invest in companies that produce both more traditional weapon systems and technologies for modern defence, such as satellite and surveillance systems, drones, and other communication technologies.

Commenting on this, Danica CEO, Mads Kaagaard, said: "We continuously assess our investment frameworks so that they are in line with reality and enable us to create attractive long-term returns for customers on a responsible basis.

“The world has changed significantly recently, and we have taken stock of that and revisited the framework.

“They are now more fine-meshed and enable us to invest in more companies that supply important military equipment.”

Kaagaard explained defence is an “important” topic today, providing new economic perspectives and attractive investment opportunities.

He said with this adjustment Dancia could better organise its customers' investments to reflect developments and at the same time support the political line in Denmark and Europe.

However, the provider said it has maintained investment restrictions on companies with activities related to cluster bombs, anti-personnel mines, biological and chemical weapons, and nuclear weapons outside the Non-Proliferation Treaty.

Additionally, investment restrictions in Danica Balance Responsible Choice remain unchanged. Meanwhile, restrictions remain on activities related to military equipment and are not part of the investment portfolio.

The provider said it recognises, as set out in the UN Charter, the right of nations to use legitimate weapons for national self-defence and legitimate national security purposes. At the same time, it said it respects international conventions concerning illegal weapons.

It said that at this time, it cannot disclose which companies are removed from the restricted list due to the adaptation. An updated restriction list is expected to be published later this year.

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