PKA, Hellerup, Denmark, divested from 20 coal companies and will no longer invest in firms that derive more than 20% of revenue from the fossil fuel.
The pension fund, which had 330 billion Danish kroner ($49.5 billion) in assets as of Dec. 31, said in a news release that it has tightened requirements for the coal industry. The previous revenue threshold for divesting from coal companies was not available.
"There is no room for companies that are not willing to adapt to a reality with less coal and more green energy," said Dewi Dylander, deputy director and head of responsible investment, in a translation of the news release.
The value of assets divested wasn't available.
PKA first excluded coal companies for economic and climate reasons in 2015. The move proved to be a good decision as coal companies across the globe have lost about 40% of value since then, the release said.
As well as divesting from 20 companies, PKA put on watch 12 firms that have coal-related revenue of more than 20% but that have committed to improve. PKA will engage with these companies.
These firms have until the end of 2022 at the latest to make changes. Those that fail to incorporate the objectives of the United Nations' Paris Agreement on climate change into their business strategies by that point will be excluded from the fund.
PKA has now excluded a total of 89 coal companies, 68 oil and gas firms, and a car manufacturer for failing to focus on climate change.
Spokesmen and Ms. Dylander could not be reached for comment.
