Netherlands-based PFZW, one of Europe's largest pension funds, announced that it has abandoned its investment in more than 300 fossil fuel companies, including Shell, BP and TotalEnergies, due to a lack of convincing decarbonization plans, leaving only seven in your wallet.
The announcement marks the end of a 2-year engagement process by the pension fund, which included a series of increasing criteria for the oil and gas companies in its portfolio, with an initial wave of 114 companies sold after failing to report emissions reduction targets, followed by companies without a stated commitment to the Paris Agreement target of Net Zero by 2050, and finally those that have not produced sufficient short, medium and long-term plans to meet their Paris-aligned targets .
Overall, PFZW abandoned its investments in 310 companies, selling 2.8 billion euros in securities.
Joanne Kellermann, Chairman of the Board of PFZW, said:
“Intense shareholder dialogue over the past two years with the oil and gas sector on climate has made it clear to us that most fossil fuel companies are not prepared to adapt their business models to 'Paris'. Although the largest companies in this sector invest in sustainable forms of energy, the shift from fossil fuels to low-carbon fuels is not fast enough.”
Fossil fuel companies remaining in the PFZW portfolio include Cosan, Galp Energia, Graanul Invest, Neste, OMV, Raízen and Worley. In a blog post announcing the divestments, PFZW described the remaining companies as “fully committed to the transition from fossil energy to renewable energy or are already currently producing primarily energy with a low carbon footprint.”
With the end of the oil and gas sector engagement program, PFZW said it will now target large consumers of fossil fuels, such as energy companies and producers of materials with a high carbon footprint, and will ask these companies for strategies ambitious transition plans.
PFZW's objectives include working towards a climate-neutral portfolio by 2050 and achieving a 50% absolute carbon reduction by 2030 for its equities, net credit and real estate holdings. The pension fund also intends to have 15% of its assets invested in climate solutions by 2030 and allocate 2 billion euros over the next 2 years to investments in companies with a measurable impact on the climate and energy transition.
