Several Danish pension funds are withdrawing their investments in Temu’s parent company, PDD Holdings, following recent revelations from TV 2. The scrutiny surrounding the Chinese e-commerce platform has intensified due to concerns over practices that undermine consumer safety and local businesses. The decision reflects growing pressure on investors to consider the ethical implications of their portfolios.
In addition, PensionDanmark and Lærernes Pension have also declared their intentions to divest from the company, indicating a significant shift in the investment landscape concerning Temu. Lærernes Pension’s investment of 35 million kroner is currently under review, as the fund’s management considers the latest findings from the media.
The focus on Temu intensified as concerns about the sourcing of its products emerged, particularly regarding allegations of forced labor in the Xinjiang region of China. Christina Gordon Christiansen, responsible investments manager at P+, commented that the firm decided to exclude PDD Holdings due to credible reports linking the company to these practices.
Lægernes Pension will not currently sell its investment of 35 million kroner in Temu’s parent company, PDD Holdings. However, the pension fund will consider whether this decision needs to change in the future, according to a response to TV 2.
Danish Minister urges action
Concerns are not limited to pension funds. Danish Business Minister Morten Bødskov has openly criticized these investments, urging members of the pension funds to voice their concerns at annual meetings if the funds do not divest. He stated, “I call on them to pull investments from Temu. There is nothing good about it.”
How much Danish pension funds has in Temu’s parent company (in DKK)
- PFA: 211 million kroner – the company will now sell
- Danica Pension: 10 million kroner
- Velliv: 103 million kroner
- PensionDanmark: 177 million kroner – the company will now sell
- Nordea Pension: has not responded; stock list not available
- AP Pension: 5 million kroner
- Sampension: 161 million kroner
- Industriens Pension: 13 million kroner
- Pensam: 0 kroner
- Lærernes Pension: 111 million kroner – the company will now sell
Source: Pension funds’ publicly available stock lists and responses from the pension funds to TV 2.
Conflict of interest in industry
Both Dansk Erhverv and Dansk Industri have not held back in their criticism of Temu. However, TV 2 reported on Tuesday that these two trade organizations are co-owners of pension funds that have invested millions of kroner in Temu’s parent company, PDD Global. Additionally, their CEOs, Brian Mikkelsen and Lars Sandahl Sørensen, sit on the boards of these pension funds. This situation has drawn criticism from SF’s spokesperson for business affairs, Lisbeth Bech-Nielsen.
“When you are a board member, especially when some of those members have been very critical in the debate, you should invest your members’ money in something that does not undermine your own salary and working conditions. It certainly looks very strange,” she stated.
TV 2 has attempted to secure interviews with both Brian Mikkelsen and Lars Sandahl Sørensen, but without success. Instead, Dansk Industri has offered insights from its industry director, Jacob Kjeldsen. “Our stance on Temu is quite clear. I have repeatedly said in various media that Temu must adhere to regulations, and any illegal activities occurring on Temu must cease. We are actively working to ensure this happens,” he told TV 2.
While some pension funds are reconsidering their investments, industry organizations like Dansk Erhverv express caution regarding their involvement in the situation. Director Niels Ralund emphasized that the risks posed by Temu highlight the need for responsible investment policies.
As the scrutiny over Temu continues, Danish pension funds are not only evaluating their financial strategies but also reassessing their commitments to ethical practices. The ongoing developments call attention to the responsibilities investors have in ensuring that their portfolios align with sustainable and ethical business practices—reflecting the broader concerns of consumers and society at large.
Source: TV2 Danish pension funds now drop investments in Temu’s parent company
