Danish pension provider PFA has announced it is expanding its investment universe for defence stocks in light of a "growing need" to invest in the industry for the benefit of common security.

"Unfortunately, we live in troubled times, and therefore, both in Denmark and the EU, in general, have recognised that there is a need to arm and invest more in defence," said PFA director of responsible investments, Rasmus Bessing.

Consequently, Bessing said the PFA could now invest in approximately 10 new companies, including well known European firms such as Airbus, Thales, BAE Systems and the American Boeing Company.

These companies were previously excluded because they did not meet the PFA's policy for responsible investments.

"We have so far had a policy of not investing in companies that produce sub-components for nuclear weapons, Bessing explained.

"This has prevented us from investing in a number of well-known companies within the defence and aviation industries, such as the companies Airbus, Boeing and Dassault Aviation, where only a very small part of the turnover comes from parts for nuclear weapons," he added.

Bessing emphasised that despite the adjustment of the investment universe, there were still many arms stocks that PFA did not wish to invest in.

This applied, for example, to companies that were involved in the production of unconventional weapons such as cluster munitions, biological or chemical weapons, or companies that otherwise violate global norms or PFA's guidelines for responsible investments.

Bessing also acknowledged that defence investment was "fraught with dilemmas" that could divide customers.

"Just as some customers think it is irresponsible to invest in weapons, others believe it is irresponsible not to do so, and we would like to take this into account.

"Therefore, we will allow our customers to either opt out of weapons altogether or invest more specifically in defence stocks," he said.

If you do not want weapons, you can choose our climate plus product, while customers who wish to invest extra in defence can do so via two new defence funds, which can be found on our Du Investerer platform," added Bessing.

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