Danish pension company PKA has confirmed it has not changed its weapons investment strategy in response to global events but continues to monitor and discuss the issue with pension fund boards.

The company set out that it has, as the rules stand today, in accordance with the interests of the Danish democracy, invested in companies that produce conventional weapons, which are used by the Danish Armed Forces and police – such as gunpowder and bullets.

However, it said it does not invest in companies or their subcontractors that produce nuclear weapons.

Additionally, it also follows the general provisions of the Geneva Convention and the conventions that are drawn up for each type of weapon, applying, for example, to the Convention on Chemical and Biological Weapons and cluster bombs and landmines.

This means that PKA does not invest in the production of these kinds of weapons, which are so-called controversial weapons as defined in the UN conventions.

It said its approach ensures that PKA excludes investments in controversial arms companies and their subcontractors as defined in the UN conventions, as well as supports the Danish people's interest in protecting its population.

The provider acknowledged that in financial legislation, a pension company must invest with the clear goal of creating the best possible return for the pension obligations to members, while at the same time controlling risk.

Therefore, PKA stated it must ensure a good and stable interest rate on pension savings.

The company acts as a responsible investor with a focus on the environment, social conditions and management as well as environmental, social and governance.

In addition to this, with other investors, PKA make demands on the companies it invests in through active ownership, applying to investments in arms companies as well as investments in other types of companies.

It also exercises active ownership through activities such as monitoring, dialogue, voting at general meetings, exclusion from the investment universe, cooperation with other shareholders and reporting.

PKA takes a position on the strategy, management and operation of the companies and tries to influence them to take more responsible actions.

The company monitors, engages in dialogue and votes at general meetings, relating to, among other things, the handling of social, climate and environmental aspects, shareholder rights and corporate governance.

PKA’s investment guidelines have been adopted by the boards of directors of its pension funds, which are 100 per cent owned by the members, and investments are discussed on an ongoing basis with the member-elected delegates.

---