A group of seven Dutch institutional investors, with €1.48trn in combined assets, has published a joint statement asking oil and gas firms to formulate Paris-aligned CO2 reduction targets and to develop a decarbonisation strategy before 2024.
Achmea Investment Management, ACTIAM, Aegon, Van Lanschot Kempen, MN, NN Investment Partners and PGGM said in their joint statement they expect oil and gas companies to set short and medium-term carbon intensity and absolute reduction targets aligned with 1.5°C warming, develop a decarbonisation strategy and demonstrate how planned capital allocation supports this.
The statement comes shortly after PGGM’s main client PFZW gave fossil fuel firms two years to achieve Paris alignment. In case of non-compliance, the scheme for care workers will divest from the companies concerned.
Metals industry scheme PMT, one of MN’s pension fund clients and for which it signed the statement, told IPE’s sister publication Pensioen Pro earlier that it will sell companies if they don’t make sufficient progress, but it did not set a hard deadline for this.
Civil service scheme ABP decided to divest from fossil fuels last year following pressure from members and climate activists.
The group of seven is vowing to vote in favour of shareholder resolutions that encourage progress towards the Paris Agreement 1.5°C warming scenario, and to vote against a company’s board if the aforementioned objectives are not met.
The group also requires executive pay to be linked to performance on climate targets.
Finally, the group of seven is calling on all parties ”with whom this approach resonates to endorse this statement and get in contact with MN and PGGM.”
The group is planning to convene all like-minded investors in the summer of 2022 ”to discuss how to advance the energy transition”.
Blue Sky Group, with €26bn in total assets, has also joined the oil and gas initiative.
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