Concerns are mounting as investigations reveal that several Danish pension funds have significant stakes in PDD Holdings, the parent company of the controversial Chinese online shopping platform, Temu. The platform has recently come under fire from business owners, industry organizations, and the Danish government for allegedly exploiting loopholes in European law and posing risks to local businesses.
An analysis of the ten largest pension funds in Denmark shows that they collectively hold investments worth nearly 800 million kroner in PDD Holdings. Among these, PFA has invested 211 million kroner, while Pension Denmark holds 177 million kroner in the company. Other pension funds have investments ranging from 5 million to 161 million kroner.
Lisbeth Bech-Nielsen, business spokesperson for the Socialist Party (SF), expressed shock at these findings, stating, “It is not in line with responsible and sustainable investment practices.” She emphasized that Temu undermines European values and poses risks to local jobs and businesses.
Correspondingly Danish Minister for Business, Morten Bødskov, echoed her concerns, labeling Temu as “a scare example” of a platform bypassing European regulations. In response to public outcry, the Danish government has intensified its oversight of illegal and unsafe products on Temu.
EU has begun investigation
In addition the EU Commission has begun an investigation into Temu, indicating that initial analyses of the company’s reports suggest serious compliance issues. Industry organizations, such as Dansk Industri and Dansk Erhverv, have advocated for stricter regulations, highlighting the potentially damaging effects of platforms like Temu on responsible Danish companies.
In light of the ongoing scrutiny, some pension funds are reassessing their investments. Danica Pension and others have stated they are examining their portfolios for compliance with accountability policies. Lærernes Pension has already opted to divest from PDD Holdings, citing insufficient improvements despite extensive external criticism.
As Danish pension funds grapple with their investment choices, calls for greater focus on supporting local companies continue to grow. Thomas Black-Petersen, CEO of the Association of Listed Growth Companies, urges pensions to divert funds towards Danish businesses with substantial growth potential, emphasizing the societal benefits of such investments.
Furthermore Danish pension funds has invested in controversial Temu
Source: TV2
