Industriens Pension, the Danish labour market pension scheme, participated in 1,171 dialogue processes on responsible investments with a total of 651 different listed companies in 2024, its annual report has revealed, showing its commitment to active ownership.

According to its annual report, the Danish pension fund targeted climate and labour rights as top priorities.

Last year, the scheme spoke with companies 271 times about human and labour rights, including on issues such as the right for workers to join unions and overall working conditions.

In addition to this, Industriens Pension had an increased focus on digital rights, such as how companies protect people's personal data.

The company also had 486 climate-related dialogues with companies in its portfolio in 2024, with a focus on faster transition in companies with a high climate footprint, such as fossil energy companies.

It also conducted some dialogues on its own, while other dialogues were conducted in collaboration with like-minded investors.

Industriens Pension head of responsible investment and sustainable development, Ann-Louise Winther, said: "We fundamentally believe that active ownership is often the best way for us to exert our influence.

“There are no easy and quick solutions, but active ownership in the form of persistent dialogue with the companies' managements and voting at general meetings can move somewhat over time.”

The annual report also stated that Industriens Pension believes it can make a positive difference in climate by remaining owners and actively influencing companies, as it aims to support “real change” throughout society and not just its portfolio.

However, the scheme noted that an exclusion of a company is considered if it does not believe a sufficient restructuring of the business is possible, or if a company rejects all dialogue.

For example, Industriens Pension has excluded all coal mining companies, due to the companies often having problems with labour conditions and basic human rights.

It also said that coal mining companies were excluded from its portfolio as they often have difficulty adapting to the negative consequences of their business models on the environment and climate.

Additionally, the scheme has excluded companies such as Tesla, Amazon and Walmart, as the companies have significant challenges with labour rights, and it has not been able to influence the companies through dialogue.

In total, the pension fund cast votes on 20,301 general meetings in 2024, which covered responsible investment issues and other issues such as corporate governance and financial issues.

Industriens Pension's active ownership is based on both dialogue with the companies and the votes at the companies' general meetings.

“At Industriens Pension, active ownership in the companies in which we invest has been a high priority for many years,” the report stated.

“As an active investor, Industriens Pension continuously tries – often in collaboration with like-minded investors – to influence companies from different parts of the world in a more responsible direction through dialogue and voting at general meetings.”

---