Danske Bank Cuts Ties with 85% of Fossil Fuel Firms in Climate Move

by  
Leo Chu  
- 2025년 8월 20일

Danske Bank, Denmark’s largest financial institution, has dropped the vast majority of fossil fuel companies from its investment portfolio as part of a sweeping new climate policy.  The move follows […]

Danske Bank, Denmark’s largest financial institution, has dropped the vast majority of fossil fuel companies from its investment portfolio as part of a sweeping new climate policy. 

The move follows the bank’s updated assessment methodology, which aims at increasing focus on companies that have credible transition plans. Indeed, the Copenhagen-based bank, which targets net zero emissions by 2050, has removed over 1,7000 fossil fuel-related companies from its investment universe, citing their failure to prepare for climate change.

The new approach, introduced last year, prioritizes companies with robust, verifiable transition plans, a change the bank says mirrors the sustainability preferences of the majority of its customers.

“Our new fossil fuels investment approach aligns with the preferences of the majority of our customers while underscoring our commitment to achieving competitive returns on a responsible basis,” said Erik Eliasson, Head of Responsible Investment at Danske Bank.

The bank’s methodology is based on the Net-Zero Pathway Framework, drawing from the Transition Pathway Initiative (TPI) and companies’ climate targets.

Assessments examine two key factors:

  • Management quality – how firms handle emissions and manage low-carbon risks and opportunities.
  • Carbon performance – how companies’ emissions reduction targets align with the Paris Agreement.

Following the implementation, Danske’s fossil fuel investment universe has shrunk to about 270 companies from more than 1,700 in 2024. However, the bank noted some funds remain exempt from the policy to cater to different customer needs.

Furthermore, while the number of eligible fossil fuel firms has plunged, Danske’s overall exposure to the sector has stayed roughly the same. The bank said it has shifted capital toward companies actively working to “future-proof their business” against climate challenges.

Danske’s action comes amid signs of waning momentum for climate commitments across parts of Europe’s banking sector, marked by high-profile exits from the Net-Zero Banking Alliance. Analysts suggest that internal, unilateral actions, such as Danske’s, could help counter this slowdown in collective green finance efforts.

출처:

https://www.esgtoday.com/danske-bank-divests-more-than-85-of-fossil-fuel-companies-over-transition-plans/

https://www.bloomberg.com/news/articles/2025-08-12/danske-bank-cuts-fossil-fuel-exposure-from-its-investments

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