Danish pension company, P+, has removed 12 companies from its equity portfolio that did not meet its responsible investment policy.

Following its latest screening of its portfolio, P+ said it identified companies with “significant challenges”, which it has excluded and divested from.

The majority of P+’s investment in the 12 companies is in the global mining companies Freeport-McMoran Inc and Barrick Gold Corp.

P+ said that both companies were examples of how a “systematic and negative impact” is contrary to P+’s responsible investment policy.

P+ deputy director and head of responsible investment, Lund Christiansen, explained: “Both Freeport-McMoran Inc and Barrick Gold Corp use the 'Riverine Tailings Disposal' technology for waste management. 

“The technique is banned in most developed countries as it can cause irreparable damage by contaminating natural river systems as well as affecting agriculture, health and wildlife in the local area. 

“Despite fines and irreparable damage to the environment, companies will not commit to changing their emission methods in the future. We therefore consider that the companies' negative impacts are systematic and significant, and both companies thus fully meet our criteria for exclusion. ”

Alongside Barrick Gold and Freeport-McMoran, P+ also divested from ElSewdy Electric Co, Evergreen Marine Corp Taiwan Ltd, Formosa Chemicals & Fiber Co, Genting Bhd, Grupo Mexico, JBS SA, MMC Norilsk Nickel, Page Industries, POSCO, and ZTE Corp.

“All companies have major challenges in meeting international guidelines in various ways, and they act in violation of P +'s policy for responsible investment,” Christiansen continued. 

“The extent of the companies' negative impact on, among other things, climate, the environment, human and labour rights is large and persistent, and we therefore assess that it is hopeless to try to influence the companies through active ownership. 

“That is why we have chosen to put the companies on our exclusion list, and they will be sold as soon as possible.”

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