Danish pension provider Sampension has cut its fossil fuel investment portfolio to seven European energy companies.

This decision follows Sampension’s analysis of its holdings in companies involved in oil and gas exploration and extraction, also known as upstream companies.

Based on the analysis, Sampension has excluded nine upstream companies from its portfolio – seven of which are American, one Chinese and one European.

The seven European companies kept in the portfolio are: Aker BP, BP, Eni, Equinor, OMV, Repsol and Shell. The pension provider said it would increase its focus on these companies.

Commenting on this decision, Sampension CEO, Mads Smith Hansen, said: “As we see it, the Iran war – in continuation of the Ukraine war – has underlined the need for European investors to have a nuanced approach to fossil investments.

“An approach that both takes into account the increased need to ensure European security of supply, and at the same time supports the green transition in the long term.”

Of the seven companies retained in the portfolio, Smith Hansen said these “make sense” due to European energy security needs and there is a “basis for influencing them in a more sustainable direction”.

On the other hand, he said the dialogue with the American upstream companies has ended up in a “dead end.”

Smith Hansen added that Sampension expects the companies to take on their climate responsibility and work seriously with the green transition.

“Unfortunately, several of them have moved in the wrong direction in this area in recent years. This is a worrying trend that must be reversed. And here we believe that the way forward is to continue to make our influence felt in the companies through various initiatives – including in direct dialogues and at general meetings,” he continued.

In response to these comments, Aker BP press spokesperson, Ole-Johan Faret, said: "Aker BP is focused on delivering energy with low emissions and high efficiency from the Norwegian Continental Shelf. We have a clear strategy to reduce our operational emissions intensity and continuously improve performance across our operations.

"We recognise the importance of both energy security and the energy transition, and we maintain an active, constructive dialogue with our investors on these matters."

At Sampension’s annual general meetings in the spring, the pension provider voted against the re-election of chairs and members of the board with responsibility for sustainability and climate.

Additionally, Sampension has supported several climate-related shareholder proposals – including in Equinor, where an account of the risks associated with the company's fossil fuel projects in the Arctic is requested.

Smith Hansen stressed that the pension company’s patience with the seven remaining companies is “not infinite”, which is why it will continuously reconsider its investments if it does not see progress.

In addition, Smith Hansen raised the importance of ensuring that framework conditions support the green transition, something he deemed a political responsibility.

“Here, for example, it is also important that the EU does not open up for new fossil extraction in the Arctic, which is partly a vulnerable area and partly can only supply more fossil energy when the world's energy supply should be a more sustainable place.”

Smith Hansen also highlighted the recent action Sampension has taken, together with Mellemfolkeligt Samvirke, in sending an open letter to the European Commission.

The letter called on the EU to stand firm on its opposition to Arctic oil and gas, which a total of 127 investors, non-governmental organisations, researchers, trade unions, companies and think tanks have signed.

European Pensions has contacted BP, Eni, Equinor, OMV, Repsol and Shell for a response.

---