AP Pension, Copenhagen, sold 315 million Danish kroner ($46 million) of equity and corporate bond investments in oil and gas companies in the first quarter as it implemented a new policy on exclusions, a spokeswoman confirmed.
AP Pension, which has about €20 billion ($21.7 billion) in assets, excluded 73 companies under its new policy.
"Companies in the fossil sector, including coal, utilities, tar sands and oil and gas, play a central role in the climate fight to achieve the Paris Agreement's goal of keeping temperature increases to a maximum of 1.5 degrees in 2050. That is why we are now tightening our grip on fossil investments, as we will not support companies that make it difficult to reach the target in the Paris Agreement," Anna Maria Fibla Moller, head of responsible investments, said in a news release.
Under the new policy, AP Pension will sell coal producers that derive more than 5% of revenues from the extraction of thermal coal as well as utility companies that derive 25% or more of revenues from energy production with thermal coal.
Fossil fuel producers with 5% or more of revenues derived from tar sands extraction will also be excluded. AP Pension will also sell oil and gas companies with at least 20% of revenues derived from oil and gas business.
The previous policy focused on excluding coal companies with at least 30% of revenues from the extraction of thermal coal, utility companies with at least 5% revenue streams from energy production from thermal coal as well as fossil fuel producers with more than 30% of revenues from tar sands extraction.
AP Pension also set new carbon reduction targets for its portfolio. It will reduce the climate footprint of its equity and corporate bond investments by 37% by 2025. It also plans to set new interim targets every five years.