State of ESG – Denmark

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State of ESG – Denmark

State of ESG – Denmark 1055 699 ESG Enterprise ESG Enterprise

There has been an increase in demand for transparency when dealing with sustainable and socially responsible practices. Stakeholders now hold companies accountable in terms of their impact on the world. 

The Environmental, Social, and Governance (ESG) criteria are the areas of interest in what is known as socially responsible investors. Socially responsible investors do not only consider the profit or risk of an investment opportunity. They also consider their values and concerns, and they rate these opportunities based on their performance on the ESG criteria. 

ESG In Denmark

Denmark and the European Union (EU) have climate as one of its top objectives. The EU has officially presented comprehensive guidelines on compulsory climate-related reports that a company must present, and the government of Denmark, in 2019, announced that there would be a climate Act. 

So companies will have to adhere to measures of law and the rising interest of business partners, stakeholders, and investors in climate footprints in the standard purchasing terms and conditions. 

The Mette Frederiksen-led Danish government that assumed office on the 29th of June 2019, based on a political paper of understanding that was entered into among the government’s supporting parties, introduced their intention to reduce the greenhouse gas emissions of Denmark by 70%. 

This Danish Climate Act will compose binding short-term and long-term targets of reduction. Adding to the implementation of a Climate Act, the Danish government also sought to implement a plan of climate action to support the accomplishment of the reduction targets. Based on what was made known by the government of Denmark in the paper of understanding, the tools that could be used to achieve the reduction targets include maximum footprint requirements and restrictions to be placed on things like supplies that are generally subject to public procurement. 

“Communication from the Commission – Guidelines on non-financial reporting: Supplement on reporting climate-related information” was published by the European Commission on the 17th of June 2019, and these guidelines are mean to guide companies on how to report information that is climate-related and that is meant to accompany non-financial reporting general non-binding guidelines. The European Commission took on these guidelines in 2017. 

The Non-Financial Reporting Directive (2014/95/EU) is the legal basis of the Guidelines and Denmark. It was implemented into the law of Denmark using the Danish Financial Statements Act (“Årsregnskabsloven” (“ÅRL”)) article 99a. The requirement outlined by this article is that when they are reporting class C and class D, large companies in Denmark must make some specific information on how they operate and also manage challenges they face socially and environmentally. This information is meant to be an addition to the management commentary in the company’s financial statement. 

These guidelines are very important tools because they are intended to establish a practical and consistent way to disclose climate-related information. So, these guidelines are important for companies subject to article 99a of the ÅRL and those who want to voluntarily provide this information. 

As per the Guidelines, a lot of companies covered by the Directive are expected to conclude that climate is a material issue, and other companies that say it is not a material issue are advised to think about making a statement in support of their claim and explain how they came to that conclusion. Also, according to the provisions in subsection 2 of Article 99a of the ÅRL, if a company chooses not to report on the important non-financial areas that the act covers, they must state it explicitly and state the reason why they did not do so. 

ESG Companies in Denmark

Recently, ESG Enterprise ran its quarterly ESG programs to identify the top companies for their ESG performance over last 3 months based on United Nations 17 Sustainable Development Goals.

Here are ESG companies recognized in 2022:

RankCompanyESG GradeIndustry
1Ørsted A/SARenewable & Alternative Energy – Biofuels & Others
2Vestas Wind Systems A/SAResource Transformation – Industrial Machinery & Goods
3Genmab A/SAHealth Care – Biotechnology & Pharmaceuticals
7Pandora A/SBBBConsumer Goods – Multiline and Sepecialty Retailers & Distributor
8ISS A/SBBBServices – Professional & Commercial Services
9LiqTech International, Inc.BBBRenewable & Alternative Energy – Biofuels & Others
10Coloplast A/SBBBHealth Care – Medical Equipment & Supplies
11Novo Nordisk A/SBBBHealth Care – Biotechnology & Pharmaceuticals
12Demant A/SBBBHealth Care – Medical Equipment & Supplies
13Napatech A/SBBBTechnology & Communications – Hardware
14A.P. Møller – Mærsk A/SBBBTransportation – Air Freight & Logistics
15SimCorp A/SBBBFinancials – Consumer Finance
16ROCKWOOL International A/SBBBConsumer Goods – Building products & Furnishings
17Royal Unibrew A/SBBBFood & Beverage – Alcoholic Beverages
18Ambu A/SBBBHealth Care – Medical Equipment & Supplies
19Bavarian Nordic A/SBBBHealth Care – Biotechnology & Pharmaceuticals
20Netcompany Group A/SBBBTechnology & Communications – Software & IT Services
21Asetek A/SBBBTechnology & Communications – Hardware
22DFDS A/SBBBTransportation – Air Freight & Logistics
23H. Lundbeck A/SBBBHealth Care – Biotechnology & Pharmaceuticals
24Carlsberg A/SBBBFood & Beverage – Alcoholic Beverages
25LiqTech International, IncBBBRenewable & Alternative Energy – Biofuels & Others
26SustainorBBBServices – Education
27P/F BakkafrostBBBFood & Beverage – Agricultural Products
28Danske Bank A/SBBBFinancials – Commercial Banks
29ALK-Abelló A/SBBBHealth Care – Biotechnology & Pharmaceuticals
30FLSmidth & Co. A/SBBBResource Transformation – Industrial Machinery & Goods
31DSV Panalpina A/SBBTransportation – Air Freight & Logistics
32Sydbank A/SBBFinancials – Commercial Banks
33Topdanmark A/SBBFinancials – Consumer Finance
34Jyske Bank A/SBBFinancials – Commercial Banks
36Ascendis Pharma A/SBBHealth Care – Biotechnology & Pharmaceuticals
38Aktieselskabet Schouw & Co.BFood & Beverage – Agricultural Products
39Galecto, IncBHealth Care – Biotechnology & Pharmaceuticals
40Alm. Brand A/SBFinancials – Consumer Finance
415th Planet Games A/SBTechnology & Communications – Internet Media & Services
42Spar Nord Bank A/SBFinancials – Commercial Banks
43Ringkjøbing Landbobank A/SBFinancials – Commercial Banks
44Jeudan A/SBInfrastructure – Real Estate
45GN Store Nord A/SBHealth Care – Medical Equipment & Supplies
46Tryg A/SBFinancials – Consumer Finance
47Forward Pharma A/SBHealth Care – Biotechnology & Pharmaceuticals
49Københavns Lufthavne A/SBTransportation – Air Freight & Logistics


Being the least corrupt country in the world, Denmark intends to shed some clarity on ethical investing. Moreover, they want to win investors over with the offer of a real price, which it says is not possessed by other sovereign ESG issuers.

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