If you really want to reform the fossil-fuel economy, you have to do it from the inside, according to the head of investments at Danske Bank A/S's $70 billion pension fund.
Poul Kobberup, chief investment officer at the Danica Pension fund, says just buying green assets isn't enough. Institutional investors need to lean on companies that don't meet ESG goals, and walking away only makes room for less scrupulous buyers, he said.
"Buying green assets will make us go some of the way," Mr. Kobberup said in an interview. "However, we will need to see companies and sectors transition to a low-carbon economy as well."
It's a conversation that's existed since ESG investing became a thing. Some believe the best way to shape behavior is by withholding money. Others say that forcing change from within is a better way to force lasting environmental, social and governance improvements.