WWF Denmark has urged Danish pension funds to ramp up their activity in responsible investing after a report found the 16 largest pension funds continue to ‘significantly’ invest in fossil fuels.

A report by the wildlife fund assessed the 16 largest pension funds in Denmark and found despite an increasing trend towards greener investments, all 16 funds still continue to hold a significant amount of assets in companies that have a negative effect on climate change.

As a result, the WWF has urged pension funds to divest from fossil fuels, perform a risk assessment of investment based on a 2°C global scenario, set clear targets for increased investments in green energy technology and make further direct investments in renewable energy.

It has further said it wants to encourage these pension funds, among others in the EU space, to increase transparency about investments and exclusions, increase engagement in international forums on responsible investment and climate change, and involve climate change when exerting active ownership.

At a presentation of the IPCC’s fifth report on climate change, UN secretary general Ban Ki-moon said: “Pension funds play an important role as they, through the investments of their pension assets, can help to provide financing for the green transition.”

“I have been urging companies like pension funds or insurance companies to reduce their investments in coal and a fossil fuel based economy to move to renewable sources of energy,” Ki-moon added.

The report focussed on two issues: pension fund investments in oil and gas companies that are involved in economically and environmentally risky oil projects; and pension funds’ climate consciousness, looking at the extent to which climate considerations and green energy investments are incorporated into the companies’ strategies.

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