Danish pension giant PensionDanmark sold its stake in Tesla and put the company on its restricted list over Tesla’s refusal to sign a collective bargaining agreement in neighboring Sweden, the pension fund confirmed in an email.
Swedish union IF Metall is currently clashing with Tesla after the latter refused to enter in any union agreement in the county. Several labor unions in the Nordic region announced they would support IF Metall’s strike against Tesla, with some unions threatening to block transportation of Tesla vehicles across Scandinavia.
According to PensionDanmark, it is the fund’s policy to divest from companies that do not align with the fund’s values. If shareholder activism does not work, then the company divests and adds the security to a “restricted list.”
“PensionDanmark’s approach to responsible investments is founded on international conventions and agreements, including the [International Labour Organization] conventions,” the pension fund stated to CIO. “If a company does not comply with our policies, we initially attempt to influence the company through active ownership—directly and co-ordinated with other shareholders. This has been the case with Tesla as well. If we determine that we cannot impact the company, we may have to sell our shares and place the company on our exclusion list.”
“In the light of the conflict spreading to Denmark and Tesla’s latest and very categorical denial to reach collective agreements in any country, we have reached the conclusion that we as investors for the time being are unlikely to influence the company,” the statement continued. “Therefore, we are placing Tesla on our exclusion list.”
PensionDanmark manages 317.3 billion Danish kroner ($45 billion), as of 2023’s third quarter, for 800,000 labor union members in Denmark. The pension fund was founded by labor unions and employer organizations.
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Tags: Denmark, PensionDanmark, Pensions, Tesla