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Danish pension firms keeping hands on contentious tobacco shares

Christian Wenande
October 17th, 2017


This article is more than 7 years old.

PensionDanmark, ATP and PFA among the big hitters to invest in tobacco

It’s tough for the pension firms to give up the smokes too, apparently (photo: Pixabay)

This week the Health Ministry announced a new partnership with supermarkets that aims to prevent the sale of tobacco products to users under the age of 18.

And last month the UN’s Global Compact (UNGC) delisted tobacco companies from participating in its initiative to involve corporate leadership in achieving the UN development goals. However, a number of big pension firms in Denmark continue to invest in tobacco shares. Business is simply too good, it seems.

PensionDanmark, ATP and PFA are among the heavy pension hitters to invest in tobacco shares, and while PFA is considering moving away from the controversial investment, others are less inclined.

ATP and PensionDanmark, both part of Global Compact, argue that they would continue to invest as long as the tobacco firms operate within the law.

“With almost 5 million members, ATP can’t avoid making investment decisions that some members with be against or disagree with,” Ole Buhl, the deputy head of ATP, told Politiken newspaper.

READ MORE: Danish health ministry and shops co-operate in fight against underage smoking

Billions at stake
Global Compact axed the tobacco companies pointing out that an industry that kills 7 million people a year is not something that is compatible with UN global health goals. PFA, also part of Global Compact, seemed a little more rattled by the expulsion of the tobacco companies.

“Initially, we have decided to offer an equity fund that doesn’t include tobacco. That’s an offer for those customers who decide for themselves how their savings should be invested,” Mikkel Friis-Thomsen, the head of communications with PFA, told Politiken newspaper.

According to the Politiken survey, the Danish pension firms hold tobacco shares worth a “larger billion-kroner amount” and investment seems to have increased in recent years.


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A survey carried out by Megafon for TV2 has found that 71 percent of parents have handed over children to daycare in spite of them being sick.

Moreover, 21 percent of those surveyed admitted to medicating their kids with paracetamol, such as Panodil, before sending them to school.

The FOLA parents’ organisation is shocked by the findings.

“I think it is absolutely crazy. It simply cannot be that a child goes to school sick and plays with lots of other children. Then we are faced with the fact that they will infect the whole institution,” said FOLA chair Signe Nielsen.

Pill pushers
At the Børnehuset daycare institution in Silkeborg a meeting was called where parents were implored not to bring their sick children to school.

At Børnehuset there are fears that parents prefer to pack their kids off with a pill without informing teachers.

“We occasionally have children who that they have had a pill for breakfast,” said headteacher Susanne Bødker. “You might think that it is a Panodil more than a vitamin pill, if it is a child who has just been sick, for example.”

Parents sick and tired
Parents, when confronted, often cite pressure at work as a reason for not being able to stay at home with their children.

Many declare that they simply cannot take another day off, as they are afraid of being fired.

Allan Randrup Thomsen, a professor of virology at KU, has heavily criticised the parents’ actions, describing the current situation as a “vicious circle”.

“It promotes the spread of viruses, and it adds momentum to a cycle where parents are pressured by high levels of sick-leave. If they then choose to send the children to daycare while they are still recovering, they keep the epidemic going in daycares, and this in turn puts a greater burden on the parents.”