Danske Invest will cut around 90 companies from its investable universe as it further steps up its efforts in sustainable investing.
The Nordic group announced that it has identified a host of firms involved in thermal coal and tar sands which it will refrain from future investment in.
This is designed to reflect the wider Danske Bank Group’s commitment to the Paris Pledge for Action, which hopes to limit global warming to a maximum of two degrees Celsius.
It means that any company that generates 30% or more of its revenue from these sources will be excluded, as well as those using these fuels as an energy source for production efforts.
The investment restrictions will be fully implemented during the first quarter of 2018, with an updated exclusion list to be published in March 2018.
Commenting on the decision, Ulrika Hasselgren, head of responsible investment for Danske Bank, said: ‘Thermal coal and tar sands are some of the most compromising fossil fuel resources and affect the environment significantly.
‘These investment restrictions are one of our actions in 2018 as part of our commitment to sustainable investments in the years to come.’
Danske Invest has made many efforts to improve its sustainability criteria in recent years, such as through the launch of a Europe-focused sustainable fixed income.