Most of Denmark's pension companies have invested in companies supplying Saudi Arabia with military equipment, holding more than DKK 1bn in the weapon trade.

According to an investigation by Danish newspaper Information, 14 of the 17 largest Danish pension companies have invested in companies supplying military equipment to Saudi Arabia, despite suspicions that the country has committed war crimes in Yemen.

The newspaper said the Danish government has already suspended its arms exports to Saudi Arabia but that the pension companies continue to invest at least DKK 1.13bn in foreign weapon giants who are major suppliers of the country.

Danica, PenSam and MP Pension are considering dropping their investments, which has received strong criticism from human rights group Amnesty.

Amnesty International Denmark secretary general Trine Christensen told the newspaper: “The pension funds should be able to see that it is about weapons manufacturers who continue to sell weapons, unscrupulously, to a country where there is a high risk that they will be used for war crimes.”

Among the Danish pension companies, the largest investor is PensionDanmark, with shares for almost DKK 244m in companies such as BAE Systems, Lockheed Martin and Raytheon. The former is the supplier of fighter jets to the Saudis, while the latter two delivers bombs used in the war in Yemen.

Responding to the article, pension fund PBU said it is an advocate for active ownership instead of exclusion, as it is a more effective tool to influence change.

PBU head of ESG Rasmus Juhl Pedersen told Information: “Exclusions of more companies is not the way forward for the Danish pensions sector. Exclusions could mean that some companies could appear publicly to have a better conscience, but it will not change anything in the grand scheme of things.”

He also added that PBU’s shares alone are insignificant compared to the large international groups and that they would not change if PBU decided to divest.

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