Danish funds challenge Nordea at AGM over Arctic Oil

A shareholder resolution urging Nordea to stop funding companies that are expanding Arctic oil and natural gas production is supported by at least?three Danish institutions investors.

The pension funds Akademiker Sampension and Velliv announced their voting intentions on Tuesday, ahead of the annual general meeting of the bank.

The activists' motion comes in the wake of the oil crisis caused by the Iran War and after Norway announced plans to increase drilling in its Arctic offshore region.

The resolution is aimed at Norwegian energy companies?Equinor BP and Var Energi which are involved with Arctic exploration and drilling.

"HIGH ENVIRONMENTAL RISE"

It urges Nordea?to align with Nordic rivals Danske Bank Swedbank Handelsbanken Nykredit and OP Financial Group by stopping lending to companies that are expanding oil and gas 'activities north? of the Arctic Circle.

Katrine Ehnhuus is a senior advisor at the Nordic Center for Sustainable Finance and one of the writers of the proposal.

Nordea has said that it will not be providing dedicated funding for Arctic drilling or oil and gas exploration, but will continue to fund certain companies.

In an email, it stated that "we continue to support carefully selected companies who play an important part in ensuring an affordable and secure energy supply throughout Europe."

Nordea is among 19 banks that are participating in a $5 Billion revolving Credit Facility for Equinor. This facility "serves to backstop the group's borrowing on the U.S. Commercial Paper Market,"?Equinor stated in a?debt presentation.

Ulla Benediktson is Velliv's responsible investments head. She said that it's important to focus on new expansion projects, and not existing supplies, for Europe's security of energy supply.

She said: "Arctic Exploration involves high environmental risk, long lead-times, and significant stranded asset exposure in a marketplace where European oil demand is expected to decline."

Sampension stated that it would vote "in favor of the resolution" because, "it appears the company has not given shareholders a sufficiently clear picture of its financing of fossil-fuel expansion". Anne Kauranen reported from Helsinki. Nora Buli contributed additional reporting from Oslo. (Editing by Mark Potter and Andrei Khalip)

(source: Reuters)