Pensioenfonds Zorg en Welzijn, Zeist, Netherlands, is giving the fossil fuel companies it invests in until 2024 to do more about global warming, its website said in a statement on Wednesday.
PFZW has 278 billion euros ($315.4 billion) in assets and is managed by in-house PGGM.
CEO Joanne Kellermann said in the statement that the board of the pension fund “feels a great responsibility for good old-age provision for our almost 3 million insured. And at the same time making a contribution to a world worth living in. We do this out of the belief that investing sustainably brings good returns and reduces risk.”
In the past five years, the pension fund has halved the carbon footprint of its equity investments. Now it’s “selling more and more” holdings of companies that aren’t moving fast enough and wants companies to move even faster, the statement said.
Ms Kellerman said pension fund officials will be checking fossil fuel companies to see if they’re doing enough to limit global warming to 1.5 degrees Celsius, “and if they don’t have a plan, sufficiently ‘clean’ we’re selling the shares,” she said. It also plans to further scale back its few investments in coal and tar sands.
By 2024, PFZW only wants to invest in energy companies that comply with the Paris Climate Agreement, she said.
The pension fund plans to interview plan participants about investments this summer, the statement said.
Details of the number of fossil fuel companies held in PFZW’s portfolio were not immediately available, and spokeswoman Ellen Habermehl did not immediately respond.
Also on Wednesday, Imperial College Business School, London, unveiled a climate risk taxonomy to help investors assess the financial impact of global warming and the destruction of nature at the corporate level. Developed by the school’s Center for Climate Finance & Investment, the taxonomy aims to identify climate risks before they impact asset use, lost assets and other financial actions.