Danish pension company Danica Pension has raised concerns about a ‘counter-movement’ in the US that has emerged, which aims to get companies and financial industries not to take ESG considerations into account.

It noted that the number of proposals at US companies’ general meetings that aim to oppose the sustainable agenda are increasing.

States such as North Dakota, Florida and Kansas have passed laws prohibiting state funds or employee pension savings from being invested in a way that takes ESG considerations into account.

Furthermore, Texas, Kentucky and West Virginia have blacklisted banks that they believe oppose the oil industry.

Danica Pension stated that it wanted to distance itself from this growing trend, as it believes companies must contribute to the green transition and increased diversity to be attractive investments and generate returns.

According to the Proxy Preview report, the number of anti-sustainability proposals has increased by 60 per cent from 2022 to this year.

These proposals will, among other things, require companies to drop climate initiatives or measures to promote diversity and inclusion.

Danica Pension said it would vote against these types of proposals.

"Companies must work to create diversity or work seriously to reduce their climate footprint in order to be well-run companies and thus attractive, long-term investments,” commented Danica Pension acting head of active ownership, Mads Steinmüller.

“In addition to the fact that it is based on good, healthy values, these are important aspects so that they can, for example, recruit qualified labour, create innovation and future-proof the business for a greener economy.

“Therefore, we clearly vote no to the proposals to protect the customers' pension investments.

"The debate in the US has taken a turn, where some players use ESG to promote certain positions that do not align with our holdings or approach to ESG.

“For us, ESG is primarily about the facts and the business significance of how companies handle risks and opportunities within environmental and social aspects as well as the management relationship.”

Share Story: