ABP, the largest pension fund in the Netherlands, will gradually phase out investments in fossil fuels. That is stated in the fund’s new policy on Monday Sustainable and Responsible Investing. Part of the new policy is the pursuit of a climate-neutral investment portfolio in 2050.
ABP sets itself the goal of reducing the CO2 emissions of its equity portfolio by 40 percent in 2025 compared to 2015. To achieve this goal, ABP is gradually phasing out investments in coal mines and tar sands: the pension fund is no longer investing money companies that generate more than 30 percent of their turnover from coal mines or more than 20 percent from tar sand extraction.
The pension fund is therefore not completely abandoning investing in fossil fuels. ABP writes in the policy document that this is “not yet sensible”. “We believe that a gradual and stable transition is important for support within society and within companies,” says ABP.
At the same time, the pension fund wants to invest 15 billion euros in sustainable and affordable energy in 2025, for example by investing in green bonds.
ABP says it is not concerned about returns due to the change in policy. “Scientific research shows that sustainable investing leads to better results,” writes chairman Corien Wortmann-Kool. “Nevertheless, we do not invest 100% sustainably at the same time. We are careful. We pay two-thirds of our pensions out of returns, so we do not have to take large risks there.”
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